Key issue

I had this same problem once, all I did was spun the piece on the column that is above the plastic trim. I think its metal and has a hole in it and for some reason the key wouldnt come out unless it was in a certain spot. I'm not sure if this makes any sense but I can post a pic if you need it.

Yes, that would cause it. THere is a rod running from the lock cyl mechenism down the column to the actual ign switch. If the rod is on a bind it will not move freely. If it comes out of the hole in the tab on the switch, then your lock cyl will have no resistance to motion-will just turn back and forth freely. Pull the plastic coller off and make sure the rod is in right and moving back and forth with the lock cyl correctly. If the coller is on right, it should "snap" into a small channel underneth. THat's what holds it in the correct position-where the coller seam comes together, should be on the bottom, should have molded plastic on each seam-push the seam together and push into the channel and/or pull out of the channel to remove if it's installed correctly.