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Here's the second question: Went to start my '65 (it's been 4+ years since it ran) but the key doesn't work. I mean it won't crank the engine. I replaced the selonoid but that didn't do it, either. When I reverse the leads for ignition and switch, as soon as I place the key to the "ON" position, the engine will crank (as if the switch is stuck in the "START" position). So, do I have the leads on the selonoid reversed, a bad key switch, or a wiring problem? Since the switch/ignition leads are in the wiring loom, I'm hesitant to slice it open to see which is which. I hate car wiring--I'm never good at it
Back in high school we used to play a joke on guys with fords. We used to switch the two leads on the solenoid to do just what you were saying yours does when you switch the leads. So it sounds like part of your system is working. I would inlist the help of a friend and using a test light have the friend turn the key to the krank position. You should have 12 volts at the wire closest to the battery cable on the solenoid.
Also if it cranked when you reversed the leads that would be an indicator that the solenoid is working. Sounds like it may be the key switch.