Recently and not every time, while in neutral, nothing happens. Put it in gear shift position neutral, and it works.
Could the mechanisms in the back of the shifter handle just need some oiling??
If your meaning that you might have to move the throttle handle a bit to get the motor to turn over, then its the neutral safety switch located in the handle mechanism.
If it is not turning over because the neutral safety is not aligning correctly or the switch is weak, then you need to adjust the shift cable and/or replace the switch
Yeah the Dodgeman is right on it. There is a micro switch in there that closes when the control lever is centered on neutral and passes the current from the start switch to the slave solenoid. Like #13 here http://www.mercruiserparts.com/bam/s...32078/1989/100 (Yours will be dependent on your control model). Yours sounds like it is a little out of adjustment or worn and is only working correctly when you get the handle just right. Here is a link to the Mercruiser control manual https://drive.google.com/file/d/0B1T...w?pref=2&pli=1