440, He said earlier the car WILL NOT start with the key.
EXACTLY. The fact that the starter tries to re--engage in park/ neutral TELLS ME THIS scenario:
He has the WRONG wire hooked where the "start signal" should be, or else the yellow start wire is crossed in the harness
That is, one wire hooked to the start relay is HOT IN RUN
This would almost exactly explain the symptoms: Won't start with key, yet cranks in "run" when the shifter is in park or neutral
Those cars "may" have several connectors that hook to "ignition run" especially if the harness is out of something else (a 4 bbl car) or has been hacked up. The sixpacks used an idle solenoid, the 4 bbls used an idle retard solenoid.
One more thing that should be checked to tell if this is a bad switch, or a wiring problem is to go down to the IGN switch connector under the column, and pull out the yellow start wire. This will tell you two things:
IF the problem of the starter cranking goes away, you know it's in the switch, or the switch has become mis--wired.
IF you can apply power to the yellow, and cause the engine to properly crank in park/ neutral, you know that wire to the star relay is intact.