[toddshotrods]

It looks like they were just using the IC starter solenoid as a terminal block to connect the two heavy gauge wires. Not real sure about why the starter wire from the key is running to it, but it does sound from the description that a relay is supposed to latch or lock on when you turn the key to the start position. Have you experimented with holding it there for different lengths of time to see if it eventually does latch? I would guess that someone has been messing with the wires trying to get it working and changed some things. It would be natural, if one was doing that, to put the starter wire back on the solenoid as it would seem to belong there. There could also be some missing parts, or substitutions that are confusing things. I would just develop a new plan and revise the current wiring to suit.