Ah, what a simple one! The ignition lock cylinder need lubrication. The key is not returning to the II position and twice was stuck in "start". The noise was the starter running while the engine was, and saying it happened only in P or N makes this a definite. The crazy dash lights and missing headlights is another indicator that the key did not return to the normal run position. You can exactly duplicate this by holding the key manually.

Use "lock-ez" spray to get some graphite in there but be armed with paper towels because it may drip a little and the key will need to be wiped off many times.