1995 Ford Falcon ignition, starter problem

It sounds like one of two possible problems. First, and most commonly, the solenoid on the starter goes bad and doesn't properly engage the drive gear to the flywheel. As a result, you get a loud screeching sound like the engine is already running.

The other possible problem is the teeth are bad on the flywheel. However, that is an unlikely problem. In your case, I feel the starter needs replaced.