Car starts without key!

I would repeat the test, making absolutely certain you did it right, and did you? unhook the switch connector?

What you should have "in series" is this:

Your battery, positive unhooked, battery ground connected.

Your test circuit should be

battery ground---to battery---battery positive -- to light--light to red switch wire.

Then you should have a grounded clip lead which you can move to each other color of the switch, checking switch positions.

Sounds to me like the switch is bad, but this doesn't really explain why the starter was running, unless the switch is all broken inside, and when you removed it things moved around in there.

I'm going to repeat the test, I did not realize that the battery positive had to be disconnected. So If i hook it up correctly this is what it should look like:

Neg battery cable connected to battery post. Positive battery cable disconnected. One soldered wire of the bulb gets connected to positive cable. The other soldered wire gets probed to Big Red wire on switch. Then take a grounded lead and touch each wire in different key states?

Should the bulb be connected to the red wire at the plastic connector side and test each color at the ignition switch side, or does it matter?

Thanks again for helping me through this! This problem is holding me from firing the motor and being able to break it in.