>The feed to your lights does not go through the ignition switch.

>3. The smaller wire from step 2 goes to term #30 on the light switch. This line is 
>not fused and should be hot all the time.

>4. The wire to term. #30 in step 3 feeds through to term #30 on the starter 
>switch.

Check your wiring diagram.  Where does the *POWER* come from and go to the 
ignition switch?  Line 30 goes from the positive connection on the starter (always 
hot) to the #8 fuse block top connector.  From there it is bridged (does not pass 
through the fuse) and goes to the 30 connector on the headlight switch.  From that 
connector it is bridged and goes to the 30 connector on the ignition switch.

Ignition Switch
15 - Positive Power to the Ignition Coil when switch is in the ON position
30 - Positive Power Input
50 - Momentary Switch for Positive Power to the Starter Solenoid

I stand by my statement that the most probable cause for your problem stems 
from your headlight switch.

Dave

P.S. Not a flame, hopefully a clarification! :)