ignition

The outer ring is actually a nut. There is a tool meant just for this, or you can gently tap it with a flat blade screwdriver to turn it to the left and unscrew it. I'm assuming your car is an older Mustang with the ignition switch in the dash, not the column.
 
The outer ring is actually a nut. There is a tool meant just for this, or you can gently tap it with a flat blade screwdriver to turn it to the left and unscrew it. I'm assuming your car is an older Mustang with the ignition switch in the dash, not the column.

Not true for a 65/66! Messing with the outer ring like that will ruin your ring and the dash too.

spade33, what year of Mustang are you working on?
 
i have a 66 mustang and i cant get the area for the actuall key out i know im supposed to stick a needle or so into it and turn is what i assume because that is what my 89 needed done to it but the car is a 66 that i just got about a month ago:D
 
i have a 66 mustang and i cant get the area for the actuall key out i know im supposed to stick a needle or so into it and turn is what i assume because that is what my 89 needed done to it but the car is a 66 that i just got about a month ago:D

You must first get the key "tumbler" out in order to further remove the switch. You can't remove the switch otherwise.

You do have a matching key, don't you?

On a 65/66 with the key in the "off" (or maybe ACC?) position, put a paper clip into the little hole and hold firmly there. It collapses a spring loaded pin. Turn the key counterclockwise, past the ACC position and then the "tumbler" should pull out with your key.

If it doesn't work (normally it does) or you don't have a key, then you are stuck with either drilling it out or removing it with a slide hammer. Either, especially the slide hammer, can damage the switch. If you are missing a key, a locksmith can make you one.

Once the tumbler is removed, then, with the battery cable disconnected, you reach up under the dash and grab the back of the switch. Pull it toward you (you are collapsing a big spring) and turn the whole mechanism clockwise (I think clockwise, but could be counter) as you are looking at it. It will disengage from the chrome bezel.

Once out, take inventory of the parts and how they go together. Assembly is opposite, except you won't need the paper clip.