If you're asking why the fuse didn't blow, here's a maybe.
A normal circuit would have a power source (battery), a fuse, a load (light bulb) and a ground. The fuse is between the power source and the load.
If you shorted the circuit at a point that introduced power in front of the fuse, then you would have power source, load, ground...no fuse in the circuit.

 

So does this mean that my switch is bad because the current went to the switch

 

Were you able to light the lights with the jumper?

 

How do you do that, i haven taken the switch apart, is it hard to do?

 

On my '98 the switch is a boxed unit that is removable from the dash.
Here's how it works on a '98.
1. Disconnect the negative battery cable.
2.Turn the switch **** to the On position and pull it out slightly.
3.Insert a small screwdriver into the slot in the back of the **** and remove it from the switch.
4.Turn the **** around 180 degrees and put it back on the switch.
5.Turn the **** CCW to the off position.
6. Turn the **** CW to the On position and pull the switch assembly from the dash.

Once the switch is out of the dash, the connectors and wiring are accessible for testing.

To install, remove the **** and replace it in it's original position and insert the switch assembly back into the dash. It snaps into place. Don't forget to reconnect the negative battery cable.

That being written, you may want to post a question on how to remove the switch from an '02.

 

Is there a way to fix the switch, what do i test on it?

 

First you need to remove the switch from the circuit. Take the switch out and disconnect all the connectors. After that, jumper 12VDC to the Ltblue/Red wire. If your bulbs are good the panel lights will work. If not, replace the bulbs until they do.

You'll need a multimeter to find the 12V.

Did you say that the headlight are OK?

Do you know which wires touched? What color were they?

 

My headlights are fine, i cant remember which wires they were, but i did pull the hvac to see if the bulbs were blown and one was i replaced all of them, but still no light, ill pull that switch if i can get some time soon. ill let you know what i find, thanks again for all the help

 

Go to your local Radio Shack or hardware store and buy an inexpensive multimeter and a pair of test leads.
What you need to do is perform what's called "1st level problem determination". You need to identify the failing component.
Once that's done, then you'll know what to fix.
You also might replace the 5A fuse in Slot #18. They can't cost more than a quarter.

 

Me too with an 02 2WD. Did you pull the switch yet? I am not sure how to pull it. And I can't find the part from Ford's website.