What is the make and the part number of the solenoid you have?
The "S" and "I" markings are MEANINGLESS because there's 3 or 4 ways the solenoid may be wired up internally, and nowadays the use one generic "housing" and the innards don't necessarily correspond to the external markings.
Sounds like you MAY have the correct solenoid for that application, but it doesn't work with the modified electrical system you have.
The original solenoid was an "isolated base" solenoid, there was no internal connection between the solenoid coil and ground.
One end of the winding was continuously powered internally from the large stud where the battery cable connects, and the other was connected to the transmission-top neutral safety start switch the provided a ground path when pushed to energize the solenoid.
Was that safety switch no longer being used when you started this project?
Here's a circuit that I like to use that provides the safety of the tranny-top neutral safety button AND the ignition must be switched "on" for cranking to occur.
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