Ignition switches can and do go bad in this body style, but its due to mechanical wear and not shorting out. I just changed one in my 97 Tahoe because it would turn off while the truck was running, but it lost everything, not just the engine. If your switch is bad, the engine will not turn over in the start position.If your engine won't turn over and the truck is entirely dead (including the interior lights), also try tightening up your battery terminals. The side posts are famous for having a crappy connection that can arc open when you hit the starter.
That said, I am sure you need to replace your PMD. It's the cause of your problems. Even relocated they can still fail. The fact that your truck starts again after you change the ignition switch is by happen chance. As they cool down, then the PMD will come back to life. I am willing to be you'll wind up hacking up your harness for no good reason and it'll die again on you shortly afterwards. I know the PMD is bloody expensive, but I am sure enough this is your issue that I'll pay for it if you put it in and the problem persists.
Replace it with a grey model PMD. They are better than the black ones with improved drivers and self cooling capacity.
http://www.hdiesel.com/P/NewStanadynePMD/827
Ok...what can the PMD do that will cause the switch to fail for all circuits feeding off of the ignition switch (not just "run")? If it's a cooldown issue, why would he not be able to walk out and start it now (after several days)?
I've had most of these thoughts, too, but I don't understand why power is failing for the rest of the ignition circuit.



