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On Fords of that era, typically the fender-mounted solenoid simply switches control power down to the solenoid on the starter itself. The fender-mounted solenoid could have failed, or the starter itself, or the solenoid wire could have fallen off of the starter. On the (+) battery terminal, are there 2 red wires leaving the lead cable end? Twice, on Fords of that era, I have seen where corrosion forms INSIDE the lead battery cable end, so the wires no longer make contact INSIDE the battery cable end. If you don't figure anything else out, while someone is holding the key in the start position, probe through the insulation on the cables leaving the battery terminal with a test light and verify there is power in the wires. Also, the negative cable could possibly be bad. Run a jumper cable from the (-) side of the battery to a good ground on the engine block, nad see if that helps. Post back and let us know what you find!
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