When I jump the "S" term I get the same single click that sounds just like the starter trying to engage.
That's correct. It's the fender mounted relay/solenoid that you're hearing click. It's at that point, that 12v is supposed to be sent to the starter.
If the voltage is dropping that much to the wires at the starter, if they check out good then your fender-mounted relay may be shot.
I put the red lead of my voltmeter on the larger term of the starter and the red lead on the small term of the starter. When I turned the ign to start, I only got a couple of volts on the meter. However, I don't really know if that matters.
Not only does it matter, it's
HUGE!!! (did I say that loud enough?)
First off, you're supposed to have the full battery voltage to the larger post of the starter at all times. Period.
Voltage will naturally drop a bit during the drain that the starter causes, but not down to only 2v. Maybe 11.5 or so, but even then only if the starter is really pushing some hard-to-turn engine or has another issue.
From your previous description, it sounded like your positive battery cable and the cable down to the starter are sharing the same post on the relay. If that's so, you have a direct connection to the battery and so should have full voltage all the time. Since it sounds like you don't, then at least one of the cables is bad or not touching the other.
Pull them off and check. When in doubt, put new ones on. If they're already new, then check them anyway. Even to the point of trying a known-good cable scrounged from another rig temporarily.
If the cables check out good, then inspect/replace the relay. Those are about the only parts that I will just replace for the heck of it. If it's not the relay, then you have a good trail spare. If it's not the cables, then you have nice shiny new and good working ones to run, with a backup if it ever becomes necessary to give one to a friend. Because, after all, yours are always in good shape, so you'll never be that person that needs new ones.
I am afraid I fried the starter mounted sole. when I had the thing hooked up wrong if that's even possible.
Well, it shouldn't be possible, you just never know these days. I don't think you're even getting enough power to do any damage. Keep looking and don't start buying new parts to throw at it. Whatever is causing this may be simpler than you think.
Before I replaced the wiring harness, and it would start, the batt + and 4 ga starter wire were both hooked up to the large term on the right side of the fender mounted sole. The small wire was mounted to the large term on the left side of the sole. There were no wires on either of the small posts.
Well, it won't start without at least the S wire hooked up. Purple on most aftermarket harnesses, or Red w/blue in Ford colors.
The way you had it hooked up is probably fine, since it probably doesn't matter which side of the solenoid (Ford calls it a relay when it's mounted to the fender by the way) the cables are on, as long as they're correctly oriented with regard to each other.
Try the above and see what happens.
Paul