The Ground switch inserts a capacitor between the amp's metal
chassis and either side of the AC power line. The purpose of the capacitor
is to drain off any noise from the AC line that could
cause the amp to buzz.
In one position of the Ground switch, this capacitor connects the hot side of
your house wiring to the chassis of your amplifier (see the red path in
the diagram).
This presents a shock hazard because it allows the amplifier chassis to
float at a voltage that isn't even neutral, much less ground. Since
your guitar's metal parts
and strings are an extension of the amplifier chassis, being
connected through the shield of the guitar cable, you too float at a
voltage that isn't neutral.
To eliminate the shock hazard, the Ground switch should be removed, as
shown below. For added safety, install a 3-wire AC cord to insure that the
amp's chassis (and therefore your body) are always hard-wired to the
electrical system's
ground.
If there's a 2-pin extension outlet on your amp's rear panel, you might
want to leave it there but disconnect it. If you must
use it, consider replacing it with either a 3-wire
or a polarized, 2-wire outlet.
If you want to keep the line filter, consider installing a 3-position
Ground switch, as diagramed below