When you say the key has to be in the "START" position, do you mean all the way before the cranking position or do you mean have someone try and start the car as I'm making these tests?

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1982 GT
351w(.060), ported & polished heads with 1.94/1.60 valves, 10.3 comp, stealth intake, 274XE cam, Holley 750 dp, Mallory dist., shorty headers, flowmasters, 4:10 gear, c-4 with 3700 stall converter, subframes, electric fan