I had a similar problem on my wife's '87 Honda.
There is an electrical switch behind the key barrel.
After 20+ years, the contacts on the switch can be worn away.
I pulled it apart and deposited some solder blobs on the contacts but of course such a cheapskate repair job last only one year.
Eventually replaced the switch.
But having said that, I don't think it is your problem because the engine still runs.
Here's a wiring diagram for the '77.
http://autos.groups.yahoo.com/group/...ng%20diagrams/
(might have to register first)
The IG pin on the ignition switch feeds the engine fuse, which feeds the main relay, which feeds the heater fuse, which feeds the instruments (among other things) via a thick LR (blue with red stripe) wire.
Buy a cheap multimeter ($10-$15 at auto shops) and trace along that path (connect the black terminal of the multimeter to a bare metal part of the body).
With the switch in the iG position but the engine off (ie, don't start the engine), you should see +13.8V along that entire path.
Note: our older models only have a single IG instead of IG1 and IG2.
- Stepho