okay i recently got an mtm2 and when its in one of the switch positions the neck pickup is connected in parallel. my question is what does this do, whats the theory behind it


Ok well the idea behind parallel is that youll get two extremely close single coil pickup tones as opposed to getting only one stronger signal with higher output and less definition(humbucker).
Whatever floats your boat really.
The theory is that a parallel connection reduces the impedance of the coils. What that does for the sound is quite subtle. I have tried this once and all I noticed was a very slight change in tone towards the cleaner, and a small reduction in volume. Nothing as dramatic as phase switching (between two pups) or coil splitting.
I pick up my guitar and play
Just like Yesterday

T C Ellis Series 2 LP w/Skatterbrane Quiescence pups
Cort EVL-K6
Yamaha RGX211 modded
H&S Electric 12-string
Shaftsbury Ricki 4001
'84 Fender Yale
Roland Cube 15x

Just another way to run things. Most humbuckers run in series which gives the most output. In parallel they still humbuck but dont have as much output so things tend to clean up alot this way. Just another way to get more versatility out of your guitar.