I pulled the ignition and replaced the vacuum pod and put it all back only to find everything was working backwards - OFF was on, and RUN was off.

Finally figured out the ignition switch itself was 180 degrees to the where it should have been in regard to where the spindle on the tumbler was. Not sure how it got there - this ignition is all messed up (the car was stolen and I think they put a hacksaw and gawd know's what else to the ignition).

Anyway, put it all back the right way, and it works 100% now. Even springs back from START to RUN. So it's all good in ignition land... Thanks for the tips guys.

More info on W124 ignition switch wiring here
W124 Ignition wiring diagram needed urgently!

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1983 240D Silver/Blue "Sadie", unknown miles. 100k miles on WVO single tank, converted to 2 tank about 10k miles ago, FPHE, Injector Heaters, Aux Fuel pump. Alcohol/Water injection. Frantz oil bypass filter
1992 300D 2.5 Turbo Green/Tan "Jade" 267K miles Stock.
1992 300D 2.5 tan/tan "Rocky" on 2 tank WVO. Pressure actuated Turbo "rat's nest" surgery completed. 197k miles