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The car won't start if you lose voltage on either side of the fuse holder....with the key on. So let's think about this....key off voltage ok...key on lose voltage...seems to be a direct short...but odd the fuse doesn't blow. I'm not an expert, but if you check this situation like three times and you are sure you are right...( I say this because sometimes we get false readings on our testing equipment) I would remove the chrome cover and look at that switch. In my my car I have simple retro fit key. In my case I would just bypass the switch by wiring both sides together. The story you told could have stressed any number of connections...but the loss of voltage is surely an issue.