Re: Marine starter connections
If the coil has an internal resistor then the external ballast resistor is not needed. I don't understand why there would be power to the coil with the key in the RUN (on) position, but that it disappears when going from START back to RUN (on). My suggestion would be to turn the key OFF, then turn it to RUN (on) and rather than use the key to start the engine, jump the starter solenoid. If the engine stays running, I would suggest you have a bad ignition switch. If it still dies, I would need to study the schematic to come up with a potential cause. If you don't know how to "jump" the the solenoid, use a short piece of wire and touch one end to the "S" terminal and the other end to the large terminal that has the POSITIVE battery cable connected to it. It will spark a bit on initial contact so don't let it scare you. I would also try running the engine with the "R" terminal disconnected. That terminal is for starting only and with an internal resistor, I don't know how that terminal would be able to bypass the resistor anyway.
In looking at the parts diagram, it appears the engine has a "Race Gard" option which is apparently a rev limiter. If yours has this device, then it may be the culprit. As for actual wiring, I can't tell from your diagram where the issue might be. I did notice however, that the ignition coil has been superceded by two new numbers. I'm wondering if perhaps you have an incorrect coil and an external ballast is actually required.