Ok so I pulled the dash off while she went out and took a pic of the ignition as well I got my tester out and checked each position starting from left of off and did a check to se which poles got power and in what position and documented it in the front of my manual. After looking at the power positions I'm thinking taking the lights wire off the 3rd position and leaving it on the 4th position may do the trick.
By the way it is a 6 pole ignition switch.

Here's the ignition switch

 

Ok so that was easy enough, I just disconnected the yellow wire that jumped from pole 6 to pole 5 and the lights are now off when in the ignition position (position 3 on my drawing ) and on with ignition switched to position 4. And although the bike shuts off when it is running in position 3 and switching to position 4 ( lights on) I blame this on the fact that the ignition switch is worn out and it looses power contact while changing over to position 4. I know when she turns ignition on she has to jiggle it until the dash lights come on so I will have to very soon hunt down a new igniton switch so for now I put it back to normal wire hookup. But for now take a look at your switch as I see your scematic also shows a jumper just off a different pole and see if you have the same jumper wire.

 

Yep hers is exactly like mine.

 

What I was thinking about was switching all the wires between 2 and 3 and 5 and 6. Jumper wire and all.

 

There are many posibilities as long as you don't overload the 15amp breakers, I found this out the hard way.
Try to keep it simple.

 

There are A LOT of possible causes. Mine did that a while back also (90% of the time). I put a button on the solenoid and used that for a while, replaced the realy also. I had my indy look it over and we decided on the ignition switch. He changed it out and made the "ACC" position (first click) a start position w/out lights on. The lights draw power when I need it to start the bike. Once started, switch to the "run" position (2nd click). With the new switch, it starts just fine in the run position. My old mechanical switch started to get hard to turn so, I knew it was on the was out.

 

The switch thing is what I am trying now but so far I haven't figured it out. I put a button on the solenoid but it is hard to push in you have to really bear down on it.