my 93 accord is having a similar situation. When the key is in position 2, the gauges don't light up, but I can use the windows. If I move the key slightly towards start, all the gauges light up. If I start the car and release the key (allowing it to fall back to position 2), the car dies. If I start the car and hold the key so that it doesn't hit position 2, the car stays running.

This seems to happen when it's hot. I can start the car and drive it easily when it's cold (morning or evenings).

I'm going to replace my ignition switch, but is there anyway to avoid having to spend $300 on it? (Dealer won't sell individual parts...they said it comes together in a bundle or something)

 

Maybe. You can try repairing the switch. Sometimes, they just need to be cleaned up and have their contacts burnished. Cost = $0.00.

Here's how I fixed an I-switch on a Vigor. No guarantees, but the "refurbished" switch still works okay today. OTOH, you may have a different problem -- your switch may need something besides that.

 

I've also experienced same exact problems as the 2 guys here, dead gauge lights, engine shutting off while driving, play with ignition and car comes back to life, etc. No radio, no power windows, all the good stuff.

The problem was the ignition switch, located opposite of the key cylinder. I did the Bob cleaning method, used a flathead screwdriver and just scrapped off the burned contacts(believe me, you'll see them). As a final touch, I lightly coated the cleaned contacts with di-electric grease and it's been wonderful ever since.

 

I have same problem with my 98' Ody . Honda replaced the switch on recall. No more problems.