his diode thing is OK, There is no R terminal, so he has the yellow coil wire on the starter wire (should be purple) and when the key is turned, the purple is powered, and the yellow is stacked on it so it gets powered too. Then, when he lets off the key, the resistor wire tekes over, but it'll send the 9 volts down the yellow wire. The diode...a one way check valve if you will, prevents the 9-ish volte from hitting the S terminal. And prevents the starter from staying engaged.
As for your stereo...does it stay on at low volumes, and shuts off when you have it cranked?
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