I've exhausted my options and now need the assistance from someone who knows their shit when it comes to this particular subject.
I've connected that one side of R512 to the 12V pin on the motherboard. I've booted the region changer from a burned disc, amd using it I've attempted to change the region. The changing of language and video output format works fine via the region changer. But the region does not seem to change, even though the region changer seems to think that does.
If I change the region to US, for an example, write and reboot US games still refuse to boot, but the region changer will report the region as US the next time I boot into it.
The Dreamcast logo does not change colour either, which it should.
My motherboard is VA0.
Below are a few photos of it and my "mod". The two wires go to a switch. As for the red wire, I have no idea what that is about, it was there to begin with. Whether that is someone else's mod, or it is supposed to be there is anyone's guess.

