Replaced the Blower Motor Relay...no change...Unplugged the blower motor resistor...no change other than high only...but still doesn't shut off....swapped out control head...no change....the control has an off for the whole ac/ heater setup...that seems to shut down the blower....but if it gets left in any other position...blower stays on.....no key needed
Here's a schematic of the HVAC control that I prepared for my use. it's applicable to the '98-'01 XJ.
As you can see, the blower is powered from fuse F6 (40 amp) in the PDC any time the ignition switch is in the RUN position. This is achieved through the blower motor relay. So, any time the ignition switch is in RUN the blower is hot. The HVAC control mode select switch provides a ground to the blower motor when the mode switch is in any position but OFF (O), as you've seen. Since the blower motor is provided with battery voltage any time the ignition switch is in RUN, the blower motor control is provided by giving it a ground circuit, direct in fan speed switch #4 position and variable in positions 2, 3, or 4 through the resistor block.
It surprizes me to read that when you detached the electrical connector from the ignition switch that the blower still runs (is this correct?).
Note that power to the blower motor relay control coil comes from fuse F25 in the junction block and that it is powered from the RUN A22 bus, which goes through fuse F3 (40 amp) in the PDC. A22 is powered through the ignition switch when it is placed in RUN. A22 (F25 JB) also powers the transmission shift lock solenoid, so if you can shift your transmission with the ignition switch OFF/LOCK it may indicate that the A22 contacts in the ignition switch are welded closed.
Try removing the blower motor relay and see if the blower still operates. If it does power is somehow bleeding into the circuit between pin cavity 87 of the blower motor relay connector and pin A of the blower motor. If it doesn't run, do this:
Remove fuse F25 from the JB and check for voltage at pin cavity 86. If you see voltage there's a short to power in that circuit. If you see zero volts, the power leak to F25 is upstream of the fuse.
Pull fuse F3 (40 amp) in the PDC - Second fuse up from the bottom in the laft bank of maxi fuses - and check for voltage at pin cavity 86 again. If you see zero volts I would suspect the ignition switch. If you still see voltage at pin cavity 86 with F3 removed there's a short to battery voltage in the circuit between F3 and F25 in the JB.
Any short to power could/may be in connector C209. As you can see the HVAC control circuits go through C209.
Check these things and get back.
Schematic: