Solenoid ( starter relay) Wiring problems

Hey all. Well, I'm stumped...  installed a new ignition switch and solenoid so i can finally get the bronco fired up now, but it wont shut off until i pull the distribute wire. 

Did some voltage test on the solenoid when not running shows the (im thinking its the "I" post but not sure) has constant 12v going to it which seems to feed the coil after i turn the ignition to the off position. I read online that it should only have momentary power going to that terminal when the key is in the start position ( to supply a boost of 12v power to the coil).... So I tried tried reversing my battery cable and starter cable on the solenoid terminals and reversing my "S" and "I" wires at the top of the solenoid and it melted the brown wire completely off!!!

I switched everything back to the way i had it minus the brown wire and it starts and shuts off ok... but doesn't have the same starting power it did when getting the 12 v from the solenoid.

I should mention that the bronco was basically completely stripped of all wiring when i got it ( i a project gone bad) and I'm slowing trying to bring it back to life - mainly for use as a rock crawler. 

Help

I drew up a very basic schematic to help my understanding of the minimum things needed to "Start the engine" - i didn't draw the voltage reg, fuses, etc.  Try to figure out why i having some melting wires etc.

The big question is regarding the solenoid and proper wiring and behaviours of that.  So lets start with that knowledge and go from there.

OR if anybody want to try and draw the basics of operating electrical system similar ( hopefully better) than what i have, be my guest! 

Hi wesside.., good job...!!  Because that's a tough job starting from scratch. Here's a wiring diagram. The way I understand it.., there should be no voltage with key "off"  ---- 6v with key in "on"  (aka "run") position" 12v when key is turned to "start" .   Is the key switch wired correctly..?    Hope this helps.... B