My car will not start but my engine stays on with no key in the ignition. My ignition switch turns all the way over with no fricition.

Check for power at the switch wire when someone turns the key to start. I would say there is a break in the circuit of the thin wire between the starter & the ignition switch

ok well this is where you might be incorrect... either you have a 12 volt wire bleeding scross or you have a bad ignition switch. the run wire off the ignition switch is the only thing that will keep it running unless you have a remote start then of course that could keep the engine running. you might want to start by making sure the ignition switch is beaking the signal to the PCM.

is the security light flashing? If so try turning the key on for ten minutes than try to crank the engine. Try this three times if no start turn the key on for thirty minutes than try cranking the engine. It should turn over if not You may need a new ignition switch. Or key. I need more info after you try this.

System operation
System arms 5 seconds after switching ignition OFF. Switch ignition ON. Ensure clock LED illuminates for 3-5 seconds. If LED flashes rapidly at regular intervals for approximately 1 minute, then flashes at irregular intervals: Key code not recognised. Remove key and try again.
Programming
When
System malfunction: LED illuminates for 1 minute, then flashes at irregular intervals. Key(s) added or replaced.
NOTE: Replacement keys MUST have blue mark. Keys with red mark are NOT compatible with this system.
How
NOTE: Programming method using vehicle keys can be deactivated using diagnostic equipment.
Obtain 2 programmed keys (A and B). Insert key A into ignition switch. Turn ignition switch to position II. Wait 1 second. Switch ignition OFF. Remove key A. Insert key B into ignition switch within 5 seconds. Turn ignition switch to position II. Wait 1 second. Switch ignition OFF. Remove key B. Within 10 seconds: Insert key to be programmed into ignition switch. Turn ignition switch to position II. Wait 4 seconds. Switch ignition OFF. Wait 5 seconds. Start engine. If engine does not start and clock LED flashes: Switch ignition ON. Wait at least 20 seconds. Switch ignition OFF. Repeat programming procedure. Repeat above procedure to program remaining keys. Keys can also be programmed using diagnostic equipment

IF YOU GOT 2 SETS OF KEYS TRY ANOTHER IGNITION KEY.THAT NOT WORN.TURN ON IGNITION FOR 5 SECONDS.SWITCH THE IGNITION OFF.WAIT APPROXIMATELY 5 SECONDS.SWITCH IGNITION ON FOR APPROXIMATELY 5 SECONDS.SWITCH IGNITION OFF.WAIT APPROXIMATELY 5 SECONDS.START ENGINE.IF STARTS OTHER KEY WAS WORN.IF CAR STILL DONT CRANK.THE DEALERSHIP HAS REPLACE KEYS AND ANTI THEFT SYSTEM AND REPROGRAM TO CRANK.ALSO CHECK TO MAKE SURE THE NEUTRAL START BACK UP LIGHT SWITCH IS WORKING.IF FAULTY IT WILL ALSO CAUSE NO START PROBLEMS.

the contacts in the ignition switch are either bad or out of alignement with the key

ENGINE NOT STAY RUNNING.COULD BE STOPPED UP FUEL FILTER BAD FUEL AND .FAULTY OR INCORRECT GAP PLUGS.ALSO BAD SPARK PLUG WIRES.FAULTY IGNITION SYSTEM.USE A DIAGNOSTIC SCANNER TO CHECK IDLE SPEED CODES AND MASS AIR FLOW SENSOR PROBLEMS.

This vintage Ford has notorious problems with weakening springs in the ignition assembly, allowing the ignition to remain in the start position even after the engine is started. Common problems with this issue is the starter continuing to grind after key is released, and electrical accessories not functioning when key is released. Simple fix: Gently turn key back just a little after engine starts, allowing the ignition switch to stay where it should be if it were to return on it's own. Better fix: Replace ignition cylinder. Not a bad idea, especially since this year Ford has a seperate key for the doors anyway, not requiring a rekeying of the door locks. Hope this helps. Sometimes a thorough cleaning of the ignition linkage/assembly with compressed air will clean years of dust off of the factory greased parts.

 If you have the second ignition key's with you try it.  If not try this, it takes about 30 min to do. 30-Minute Learn Procedure 1. Turn ON the ignition, with the engine OFF. 2. Attempt to start the engine, then release the key to ON; the vehicle will not start. 3. Observe the SECURITY tell tale light. After approximately 10 minutes, the light will turn OFF. 4. Turn OFF the ignition switch, and wait 5 seconds. 5. Repeat steps 1 through 4 - two more times - for a total of 3 cycles of 10 minutes. 3x10 = 30 minutes. The vehicle is now ready to relearn the Passlock Sensor Data Code and/or passwords on the next ignition switch turn from OFF to CRANK Important: Turn the Ignition Switch OFF. The vehicle learns the Passlock Sensor Data Code and/or password on the next ignition switch transition from OFF to CRANK. You must turn the ignition OFF before attempting to start the vehicle. 6. Start the engine. The vehicle has now learned the Passlock Sensor Data Code and/or password. 7. With a scan tool, clear any DTCs if needed. History DTCs will self clear after 100 ignition cycles. Without a scan tool you may have momentary starter interruptions while history clears itself. Good luck and hope this helps, keep me posted, be glad to help. 

Sounds like a bad ignition switch. Not the lock cylinder, but the electrical switch.