Car still runs with key off ..have I wired this right?

Wagon of Death said

.Factory ignition switch,

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OK how exactly did you wire the factory key to the MSD? And what exactly are we working on, that is what is the ignition switch out of?

You have IGN1 "run" which is the "normal" run power supply under the hood to ignition, VR, alternator field, etc.

BUT THAT GOES DEAD in start

So you must jumper IGN2 (normally brown, normally fed to coil+ sided of ballast) ---you much jumper that to IGN1 to get ignition starting power in "start"

IF YOU jumpered the start wire to ign1 instead of the IGN2 post to IGN1 it is possible that start relay feedback can hold the MSD "on."