I took off the housing around the switch.
Turn to position 1 and key turns very easy,
Position 2 ,you can feel it start to catch.
#3 is even harder to get to.
The cable coming into the unit looks ok from the outside.
Questions:
Where does that cable connect to on the other end ?
Could that be part of the problem?
Can I just unclip the key module from the metal housing
or is there other hidden fasteners
thanks.

KlausC, when you say lube the cable , is that at the steering wheel end or other end and what is easiest way to get that area exposed.
Also , are you saying to lube through the key hole. Thanks.

Never lube the key hole. Lube the back end of the keyed switch where you can see it turn in the housing.
The cable slides a little when the shifter is put into P. So lube where it goes into the back of the ignition.

Klaus
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Just driving a 1998 V70R :)

The cable is there to lock the key in so you cannot remove it when the gear selector is not in P. Just put a drop of oil or liquid graphite, no WD40, on the cable end to help it out.

Your problem sounds like it is more on the other side of the steering column. The electrical portion of the switch. Remove it and then wiggle the key portion around. The key should move freely, if not then oil fron the drivers side of the column.

The ignition switch can be rotated with a screwdriver. If the battery is connected, you will be able to start the car. But just check the movement to posII. A little blast of dielectric grease should help.

The key portion of the switch cannot be removed. It is installed with two hardened steel break off bolts. The bolts need to be drilled out to remove the switch, which you don't want to do.

Klaus
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Just driving a 1998 V70R :)