console lights should be on with the switch pulled out once and all the way.
Sounds like something is wrong somewhere, the fact that they work at the #1 position and don't at the #2, sounds like it might not be a fuse. But check in case. It does sound more like a problem with the switch.
ALso you can replace the bulbs on the back of the cluster if one or two are out. No need to replace the whole cluster, just change the blubs.