ok so it was either the white wire or the pink wire that runs into distributor, we started with the white, while the engine was running i cut the wire and the engine died, just what i was hoping, we wired up the new switch gave it a test fit and tried it. it seems to be working fine except it stalls if you hold it too long. i know i just have to adjust the cables and switch position, but i was abled to get it in and out of gear foward thru reverse.
i would like to thank eddie from young performance for helping point me in the right direction, i think the pink would work too, but i dont know what the difference would be and how it effects everything if any.
heres a few pics from today, the boat is far from complete but it went through a major transformation, new everything with new tech, i cant wait to get motor broken in and run it good, was at 40 mph at 2000-2200 rpm with small 23" prop to break engine in with. hers the link to the whole build...
http://www.classicglastron.com/phpbb...php?f=20&t=169
http://www.classicglastron.com/phpbb...1262&mode=view

As annoying as that shift switch can be, you really do need it.

Not to get to far into semantics, but the correct way to hook up the shift interupt with a Thunderbolt ignition it to tie the grey wire from the interupt switch to to white/green wire coming out of the distributor. This will ground out the magnetic pickup (or hall effect) in the distributor and command the module to stop firing momentarily allowing the gears to disengage. Going through this right now on my 5.7EFI bravo 3 motor into a alpha 1 boat. Hooking into the Purple wire will kill the ECU momentarily, but it is doing so by causing a dead short to ground. Probably not the best way if you ask me. Looks like you are on the right track though.

its an efi motor so i dont have thunderbolt ignition, the white wire works fine. breaking in motor this week, weekend is the air show so ill be ready to go fast!