An update: apparently ground is lost on the column when the key is switched on.
Using an ohmmeter I could see that I had a good ground on the column with the key off. Press the horn switch and ground to the black wire is good, horn comes on. Turn the key on and the ground on the column disappeared.
So .... where is the source of ground to the column suppossed to be? I'm guessing either thats bad or there is a serious wiring snafu in/around the ignition switch.
I ordered a service manual, it hasn't arrived yet. The previous owner was a real butcher when it came to fixing this car, nothing he touched was fixed correctly, usually as cheaply and as crudely as possible. I see evidence that he cut and spliced wires around the fuse box - I'm worried about how badly he hacked up the wires down there.