Any ideas ???

Switching wiring harness sounds like a good plan to me too.
Now was the wire smoking before you changed the harness? was the engine cranking over by the key before you changed the harness?
No. None of the wires smoked and the engine started from the column just fine. They did run a jumper wire at the starter relay (could this have been because they bypassed part of the switch?????? )

Is the neutral safety switch on that same circuit?
I don't now. It has to be tied into it somehow I'd think.

By the way the switch on the steering column that I'm talking about is the one down under the dash that your key actuates down below by a linkage rod.
Yes, there is a rod going down there, and I can investigate that switch as well.