ok, using 04 wiring diagram.... 4 wires into ign switch... red (batt +), orange (switched ign), grey (goes to switched orange circuit ofr power), and brown (lights hot side).... in P position, continuity is red to brown (what you have now, toggle on bat+ to lights hot lead).... in run, continuity is red-orange (bat + to ign), and grey to brown (ign hot to lights).... so, if you want to keep the toggle, connect the orange wire to same terminal as the brown... gives hot to lights and ign... if using an on-off key switch, same scheme.... if using 3 position key switch, red to bat, orange to ign, brown to accesory.... that'll give "off, no juice to nada", "run, juice to ign and acc (lights and ign work)", and acc "juice to lights only".... that all assumes you have the harness extension from the main harness to the original ignition(4 pin connector), if not, the red is red/blue (coming from man fuse), both orange and grey are orange (either will work, just 2 leads form the same circuit), and brown is still brown... so, red-blue is bat hot, either orange is ign, and brown is hot to lights.... on 86's, the grey wire is on both sides of the 4 pin connector,and the orange ign hot has an orange/blue wire on the harness side attached to the same pin....87-94 the grey wire is jumped from the main harness side orange to main harness side grey terminal, as well as the orange/blue wire being attached there....95-03 are the same as 86s....
edit: by the way, JOG2's suggestion for the mcroswitch jumping the decomp timer circuit is an excellent idea... it eliminates all the other switches in the start circuit... thus, any failure on the switch side (clutch switch, start switch, and harnessing involved) can be bypassed, and let you ride home, instead of calling for a pickup truck... it's also excellent for a diagnostic tool for start circuit faults.... hit the oem start button, no crank? hit the JOG2 switch.. if it cranks, fault is to the switch side of the decomp timer, no crank, fault is from decomp to starter... it cuts the diagnostic variables in half....