"Keith.... In the START positi
"Keith.... In the START position, 12 volts is being applied to the pulsepack which is normal. Obviously you have that as the engine is running.
In the ON position, you must also have 12 volts being applied to the pulsepack. Also obviously, you do not have that and therein lies your problem.
There should only be one (1) wire attached to the "S" (solenoid) terminal of the ignition switch, usually a white wire that leads to the starter solenoid. It's possible that you might also have another wire there that is leading to the power source wire of the pulsepack which does not belong there.
Another factor that may be allowing the engine to run when the key is in the start position is that a diode is attached to the battery terminal of the starter solenoid which leads to the pulsepack, and if so, leave it there as it belongs there.
The wire that leads from the igniton switch to the pulsepack should be attached to either a "I" (ignition) or a "A" (accessory) terminal of the ignition switch. Either terminal would contain the 12 volts needed ONLY when the key is turned to the START and ON position. It appears that it is not attached where it belongs.
Let us know how you make out.
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