Lame attempt at sketching this out shown below:
The rectangle on the left is the I-PAC. The big rectangle to the right of it, with the circle in the middle is the P1 8-way joystick (looking down from above the panel). The four little rectangles attached to it represent the 4 microswitches. The similar object on the far right is the 4-way joystick. The object at the bottom with the blue, black, and red wires connected to it is the SPDT switch. I have shown it as a toggle switch, but they also make slide, rocker, or rotary switches which would work. Finally, the rectangle between the I-PAC and the SPDT is the microswitch on a pushbutton.
The teal wire connects the NO (Normally Open) terminals on the joystick UP microswitches to the I-PAC. The orange (brown?) wire connects the NO terminals of the joystick Right microswitches to the I-PAC. They can be one wire or separate, it doesn't matter. There would be additional wires for the left and down terminals, but I didn't show them to avoid crossing more wires than I already did.
The blue (purple?) wire connects the four COMMON (GND) terminals of the P1 Joystick together and to the SPDT switch terminal. (The terminals are not on the inside portion of the joystick, but it was easier to draw them this way.) The red wire does the same thing for the 4-way.
The center terminal of the switch goes to the I-PAC GND. The button is wired normally.
As shown, the switch connects the blue wire with the black ground wire, enabling the P1 joystick. Flipping the switch disconnects the blue wire and connects the red and black wires, disconnecting the P1 joystick and connecting the 4-way.
Sorry for the bad art.