2010 Boss country clipper zero turn with Kohler CV740 starts and runs in the start position but dies in the run position. Last season it would sporadically die but restart no problem. Disconnected start solenoid as soon as it start, runs great when holding it in the start position. Continuity tested all circuits, all they safety circuits appear to be working fine. The only thing found was the fuel solenoid not retracting the plunger but will hold it in if pushed in. Part is on order but I don't believe it is a fuel issue as that would not cause it to die instantly. Any suggestions?
Also should the oil pressure switch have continuity to ground as it doesn't right now.

You need to determine if you have Smart Spark ignition. If you have Smart Spark the module needs voltage in the start and run position to produce Spark so you could have a bad ign sw or a wire connection that is loose.
The oil switch stays closed(grounded) grounding the coils, until the oil pressure reaches approximately 3-5psi which is easily attainable while cranking.
Here is a link to the service manual for your engine. The oil switch is discussed on page 32
here in the service manual
http://resources.kohler.com/power/kohler/enginesUS/pdf/24_690_07_EN.pdf

 

This engine does not have smart ignition. I’ll surf over the manual and see if anything comes to mind.

 

This engine does not have smart ignition. I'll surf over the manual and see if anything comes to mind.

If it dos not have Smart Spark, then when you release the key to run, you could be losing the feed to the fuel solenoid or the ign switch is grounding out the coils. Check for power on the wire for the fuel solenoid in the run position. Check to ensure that your coils are not grounding out in the run position. The only time the coils should ground is when the key is in the off position. To eliminate anything with the oil sensor, as a test, disconnect the wire from the sensor.

 

Just a question. If the regulator was faulty could it kill the engine in the run position?

 

No, it should have no impact that causes it to immediately kill the engine. If there was any issues with the regulator, it might cause a fuse to fail, if that. With an MDI ignition, any position other than off should not cause the coils to ground or the fuel solenoid to release. The only other thing is the oil sender. There are either one or two diodes in the Kohler engine harness. If one or both fail, it could cause issues with the fuel solenoid, but that would be easy to check. Just get a test light and see if you lose voltage at the fuel solenoid in the run position. The same test could be done with the ground wire for the coils to see if a ground was being applied in the run position. If you dont want to do that, as a test, disconnect the kill wires from the coils and see if there is any change.
Why dont you download the owners or parts manual for your machine and review the schematic as well just to ensure there is nothing else that is applying a ground to the coils