Thanks, Anthony, for your knowledgable reply. A little update on the ign sw, I had the switch replaced a while back and the problem seemed fixed for a while (started in low gear and key turned all the way off and could be removed).
Then the problem returned, it is still intermittent, usually only goes away briefly but happens occasionally. Described the problem to a mechanic and he said I had diagnosed the problem by my description but I doubt if the new switch is haywire already so I'll check out the fuse and look for bad connections on the tranny switch. I've had to revise my thinking from mechanical interlock systems to electrical solenoids which tends to date me! Thanks again for the reply and suggestion.