First, tell your son to never engage the starter with the tranny in gear, bad habbit. Clutch should be depressed to ease the stress on the starter.
Now, if the starter will not work and the car is in gear, that is how it is designed to work. So, how far down is the clutch peddle? Sons have a tendency to use as little effort as possible... :)
There is also a ring behind the key switch preventing someone from stealing the car and that could be part of the problem. Locking the car and unlocking again with the key fob may have neutralized the alarm system and allowed the key to turn to position III.
Was the key initially turned to position II and the warning lights on?
Klaus
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1975 164 w/174,800mi (For Sale) 1995 850T w/91,000mi, 1998 V70R w/129,000mi
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