Strange Ignition Switch Problem "88" 300E

[RonD]

I had the dreaded ignition tumbler failure in my 88 300E to the point the key wouldn't turn again so I had to drill the pin out from under the dash to remove the entire steering lock/ignition assembly.
Long story short, I did not realize that you also could not remove the electrical portion of the ingnition without the key being turn on so I proceeded to pry it out with screwdrivers. It came out, but it also pulled all the plugs out of the sockets.

Everthing is back together now and I managed to find a wiring diagram for the ingnition and correctly re-assemble the ingition.

Now comes the strange part....With the key in the "off" position (even with no key in the ignition) the power windows work, gauges are on. Turn the key to the "start" postion, the car starts but as soon as you let the key go, is shuts off. No Power in postion "2". Some how postions "1" and "2" are switched around even though the wires are in the correct postion.

Is the electrical portion of the ignition shot?