Now as I turn the key off the engine shuts down. fine. If I turn the key slowly. just before the key shuts the engine off and I hold it in that position the engine increases RPM'S.
NEXT problem is with no acessarys on just the engine running. If I remove the positive battery terminal the engine increases rpms signifcantly. (400-500) RPM approx.
The difference in engine speed is probably due to the load of the alternator charging the battery. Ditto if you lift the battery connection with the engine running; if the battery is not 100% charged it takes horsepower to charge it.
The ignition switch contacts are probably not making/breaking exactly simultaneously, it's either worn, or not intended to be turned so slowly.
You might just adjust the ignition switch, there's a rod from the column lock to the switch lower on the column.
I wouldn't worry about this, but keep an eye on possibly wearing-out parts...