So just to clarify, in the sprung loaded START position the dash lights go out ?
If it was a bad starter it would draw no current from the battery and so not cause dimming/going out of the dash lights.
If this is the case, it sounds like a knackered battery, or majorly bad connection, try hooking up a mates jumpack to it and try again, if the battery is flat/duff they(starter solenoid) usually clicks rapidly.
Another option as it's a ford is the ignition switch contacts burnt out, anyone with basic electrical knowledge would soon get you moving.
tabetha