To start the engines, you must continually click/drag on the switch (about 2 times per second) until ignition. Takes about 6-8 clicks as I recall. The issue is most of these starters only hold for .7 - 1 second and stops, so continually clicking the switch holds the starter engaged until ignition.
Yes, the water rudders are in the contact points. In FS9, I use shift+W to activate; in FSX, cntrl+W.