Yes pontiacgp, I forgot about the actual switch. The key switch is not the actual ignition switch. The switch is actually a rectangle shaped box bolted to the column near the bottom of the column. There is a metal rod that goes from the key to the ignition switch. If the rod is bound up or sticky, it can cause the switch to not release like it should. The internal parts of the switch could also be going bad. Test it like pontiacgp posted.
If you have a rebuilt starter, I have seen them bad right out of the box many times. When the big reman companies "rebuild" them, they usually just replace the one or two bad parts in it, clean it up and put it back in the box. I had to get a new starter for my truck. After replacing the reman parts store starter three times in a couple of months, I finally took it to a local guy that rebuilds starter and alternators. I haven't had a problem with it in over a year.