2 ignition switches and still no run

I have 2 ignition switches 1 old and a new one that I purchased from Laysons restorations. the old one has the typical burned out issues turn to the crank position and it fires up roll of to run and it dies.... the new switch when I turn to crank does nothing and when I turn to run cranks and fires I turn to the off position and it disengages the starter, but I am able to pull the key out while it is running and I have to unplug the blue wire to kill it... On the new switch it's like all the functions of the switch are set 1 setting back and I believe that the original switch is burned out.

Also the blue wire gets physically hot when the car is running with the new switch in and at position 0. Any ideas or comments are greatly appreciated as I have been trying to wrestle with this for a while and have gotten nowhere, I do have a new painless wiring harness that I plan on installing but I need this to run for a little while before I can get the time to install it.