Issue resolved!!
I had been having trouble with my door locks and went to the dealer three weeks ago to have them cut me a new key using the VIN. Their key didn't work and I had them do it for me twice, with no luck.
Well, it turns out both of the keys I was using had finally been rejected by the ignition lock. I called a locksmith today and showed him my old keys and the dealer key and he cut me a new key that solved all of my problems. All this time thinking I had a mechanical problem with the steering and ignition locks was just a bad key.
He used the dealer key to get the cut and got me a new set that works perfectly!! He says the dealer's key cutter must not be calibrated properly. Damn them!!
Good info and thanks for posting up your resolution!
Is this on an 80 or LX and what year?