The KEY is more of a lock and nothing to do with the electrical part of the starting system. The ignition switch and starter solenoid is what makes things start, run and cuts off the engine and kills power when in the OFF position . The rod connected to the KEY section does have to be adjusted by moving the ignition switch forward or downward on the column to have the correct rod throw to operate the ignition switch correctly.
I put a new solenoid in it and a new ignition switch i did try cleaning the bulkhead but i did not add another chassis ground
If it doesn't crank with the ign switch you have either a bad or misadjusted ign switch, problem with neutral safety switch, or the red with blue stripe wire has a issue(could be at bulkhead connector)... I'm assuming since it cranks with a wire run to the solenoid, it's grounded properly... Misadjusted ign sw and neutral safety sw issues are common problems...
