Tim,
Every circuit in your car
should be fused. If I recall correctly, the IGN SW COIL wire is engergized when--as you guessed--the ignition switch is switched on. If you wire the MSD power relay wire (the small red one) directly to the ignition switch terminal, it will work, but you won't be fused. Instead, wire the pink IGN SW coil wire to the MSD power relay wire so that this circuit is fused. Even better, you can wire up a toggle switch in that circuit and mount it out of sight so you can turn it off when the car is unattended and the vehicle will not have any spark and so it won't start. Cheap theft deterrent. Good luck Tim and keep the questions coming
!
Mike