[dscott]

RZ, are you looking at the solenoid from the top of the car and is it mounted in the factory location? If it is then you have the wires backwards. The battery terminal is on the right and the starter is on the left. No the red wire on the switch should not get hot but this may be related to the solenoid hookup.
Don

I keep forgeting this is an EM car! As you look at the solenoid face on, the battery wire is on the left.

You may need to try the shift selector in something other than park or neutral. The switch may need to be adjusted for proper operation. Otherwise jump the 2 wires for a test.