VFD is only for connection to a 3 phase motor.
Just to be clear, I do not crimp the ferules mentioned. I pass the wire through the ferrule tube and solder the tip so the solder wicks into the ferrule tube. Takes about 5 seconds, and works fine. Otherwise you need to use stiff solid wire and/or larger gauge. Stranded wire would need to be tinned with solder. The ferules only become square when crimped, spades to a terminal block would also be crimped to the wire, but spades would take up way too much space for all the connections. These round ferrules work very well once you start to use them and are sized according to the wire gauge.
Box of 1000 assorted ferrules for $13 :
http://www.ebay.com/itm/1000pcs-14-...rules-E2518-/111068172490?hash=item19dc2dd0ca
Crimping tool if you went this route for 20$ :
http://www.ebay.com/itm/0-25-6mm2-T...re-end-Cord-/151278086106?hash=item2338e067da
Agree drum switch is way overkill, but it can be used as shown. In my mill builds, I use momentary switches for the run (guarded green), stop (unguarded red), a separate direction switch (forward/reverse direction) and an E-Stop. How it is wired/configured depends on the VFD, whatever works for you. Most VFD manuals are many pages to describe all the features, 99% which you probably will not use. The Mit's manual is no difference then many other VFD manuals. After you have done a few, they are all about the same.
I recommend 600V rating wire between VFD and motor, as the VFD can cause breakdown in wire insulation with time. Shielded wire is recommended for longer motor runs, the control wires should not be run in parallel with the motor cable (i.e. tied together). The Mit's is easy to program from the VFD, I had posted a previous link to a video showing this. Computer would work, but you need the software and a connection cable...., not worth the trouble for the few parameters you would change.
Mark