Thanks for everyones help. Had an electrician come out and here is the
conclusion. The sparks I saw with my neon-tester were due to the
switches being back-stabbed and the screw on the side was loose. When
my neon-tester probe touched the side (which was grounded) it appears
(based off where the probe and screw melted) it brushed against the
loose screw and then sparked. This appears to be the case with both
switches.

Needless to say, he also recommended to get a digitial multimeter which
I did and I love it. It was great to have him say that b/c it helped
ease the price with the wife!

Thanks again to everyone's help!