Neutral Safety Switch??

I have a 2000 350FM, when you come to a stop and shift into Neutral, the neutral light does not come on. If you switch into reverse, then back to neutral, 80% of the time the neutral light comes on. The other 20% after switching from reverse, then switch into 1st gear, then into neutral the neutral light comes on. Of course if the light is not on, you can't start it.
Dealer said the neutral safety switch needs to be replaced for about $1,000.
Where is it, can I do it myself, it is hard to do, or can it be by-passed?
Any other ideas?
Thnaks for any help.