if you can move the key in different places then i too would suspect the ignition switch....the only thing that i can think of being the problem is stripped or cut wires grounding out or touching each other...or inside the switch itself the problem being the moving contacts...sometimes they break or fall out of position just from moving it...i had problems with my headlight switch (((not really the same but same idea)))....i had to wiggle it in order for the headlights to go out so i pulled it apart and noticed two things the contacts had become full of grime...im not really sure what it was but it was preventing electrical contact and there was a peice that moved the contacts was broken...cleaned the contacts replaced the plastic piece and all is well....if you can i would see if you could just remove the ignition switch and pull it apart and see if the contacts are worn or out of place...if all is good there then there is a wiring problem but i suspect it is a contact problem because it will eventually work in the right position...
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