Shortly after I bought my 86 coupe, a novice (didn't know he needed to be in reverse before shutting down) managed to jerk the key out of the ignition while the car was in 1st gear. I thought I noticed that the key behaved a little differently, but it still worked alright.
I recently had two new ignition keys made at a Chevy dealership. The new keys would not work in the ignition. They re-cut them using Chevy stock keys, including the resistors. I can get these new keys to work with some serious fiddling-- I have to reinsert the key into the switch 3-5 times before it will finally turn ON and start the car.
I don't know if the key story is related or not, but I have been having problems with the 4+3 transmission since the 1st gear jerk. The OD is very sporadic-- sometimes it drops into OD correctly, sometimes it doesn't. At those times I can fiddle with the ON/OFF switch on the gearshift (maybe 15-20 clicks, sometimes more, sometimes less) and usually get it to drop into OD. Usually, though, when I pull up to a STOP light/sign and put it into 1st to take off, it drops out of OD and doesn't drop back in automatically when I shift through the rest of the gears.
I have replaced the OD ON/OFF switch. That had no effect.
I have cleaned as many of the ground wire connections under the hood as I can find, and disconnected/reconnected most of the couplings in the wiring under the hood, trying to make sure I had clean connections. That had no effect.
This week I replaced the OD Relay under the hood. That had no effect.
I'm trying to eliminate external possibilities before seeking help with the transmission itself. I've been told by S-K that the 86 and newer 4+3s were pretty reliable (mine was a 1-owner with 39000 miles when I bought it).
Could the ignition/key problem be causing an electrical or sensing or relay problem that would make the OD balky?
Thanks for the advice.

 

it could be that the ignition switch has been damaged internally, and in turn is causing shifter issues. before buying more parts, i woudl talk to someone at a GM dealership..who knows about vettes..preferably someone older who has been around the block, and ask if it is something that they have heard of

 

sounds like ur ignition switch is wore out, replace and have ur vat code put on a new key.
tranny prob sounds like a bad od sensor i would replace that as well.