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Yes, it is working as designed now. Hold down switch in start position, it starts up, the starter disengages when the engine fires up.

And there it is. My suspicions were correct. Used some electrical tape to separate the wires, adjusted the lockout a tad... boom it works. Appreciate the help guys!

Okay, I will check for a jumper where you noted. After studying the wiring diagram for a while, I plan also testing the wires at TB4-3 and which ever P55D is on for shorts. I now have the suspicion someone twisted the crap out of J16 connector for S7 and maybe twisted the leads together, thus...

Matter of fact, I can start the engine with the starter lockout switch barrel disconnected.

The starter stays engaged while I am holding in the start position while I wait for the oil pressure comes up. Stays engaged until I release the switch back to prime and run. The lockout switch is not disengaging the starter when the engine is up to speed.

New to the forum, been reading for a while on my new to me 002A. Love this forum, full of awesome information! I'm having an issue with my starter not dropping out when the engine is running. I checked the starter lock out switch and it works correctly. I get continuity with the engine off...