My Mod Switch (Debug) -- Outdated or Bad???

I bought a US System about 9 months ago & it already came with a Mod switch. However it doesn't seem to work with newer games. When I switch it "ON" and power up the system, the screen either goes black or I get red & white lines. Plus it makes a ticking sound thru the tv. Is it suposed to work with all of the games? Do I have a bad chip or is it just outdated? Any suggestions will help...