This is actually similar to the style I'm using in my thesis. I'm not sure I understood what you mean with "switch margins", but Latex should arrange the margins in a twoside document automatically. If you want to add further space, you can use the option bindingoffset of the geometry package (you only need to change the 0mm in the code below).
To change the footers (and headers) of the page I used the fancyhdr package; i redefined also the plain style to keep consistency throughout the document.
\documentclass[12pt,a4paper,twoside]{report}
% Page layout
\usepackage[bindingoffset=0mm]{geometry}
% Random text
\usepackage{lipsum}
% Page style
\usepackage{fancyhdr}
% Defining the DEFAULT style
\fancypagestyle{MyStyle}{%
\fancyhead{} %Clean headers
\fancyfoot{} %Clean footers
\fancyfoot[RO]{\leftmark \ {\vrule height 13pt width 1pt} \thepage}
\fancyfoot[LE]{\thepage \ {\vrule height 13pt width 1pt} \MakeUppercase{\chaptername}\ \thechapter}
\renewcommand{\headrulewidth}{0pt} % Remove header rule
\renewcommand{\chaptermark}[1]{\markboth{\uppercase{##1}}{}}
}
% Redefining the PLAIN style
\fancypagestyle{plain}{%
\fancyhead{} %Clean headers
\fancyfoot{} %Clean footers
\fancyfoot[RO]{{\vrule height 13pt width 1pt} \ \thepage}
\fancyfoot[LE]{\thepage \ {\vrule height 13pt width 1pt}}
\renewcommand{\headrulewidth}{0pt} % Remove header rule
}
\begin{document}
\pagestyle{plain}
...pages in plain style...
\pagestyle{MyStyle}
\chapter{First chapter title}
\section{First section}
\lipsum
\section{Second section}
\lipsum
\chapter{Second chapter title}
\section{Third section}
\lipsum
\section{Fourth section}
\lipsum
\end{document}
One thing I noticed is that MyStyle is applied correctly only if there is a previous \pagestyle{plain}; I'm not sure of why this happens, but luckily there are always pages in plain style before the chapters (at least in my thesis), like table of contents, list of figure, etc.