Volvo Repair: starter problem 86 240 DL will not disengage, starter solenoid, fly wheel

Question
After replacing starter I found that the new starter will not disengage after the car has started. The starter continues to run. With the car running I removed the wire from ignition to starter solenoid. The starter stopped while the engine continued to run. I landed ignition lead wire back on the starter. The starter started and tried to engage the fly wheel, some grinding and quickly pulled the control wire again. I suspect a problem with wiring but suspect most likely cause is faulty ignition switch.  Is there something that I am missing?

Answer
Steve, where did you get this starter from?  Its possible that is a crappy rebuilt starter.  If you turn the ignition switch back a little does it stop?  or is it stuck?  I have seen starters burn up because of the wiring harness.  a 20 year old car, is highly likely especially if the wires at the junction block at the firewall are all chaffed.  Roger