1999 V70 XC well maintained 100k miles. Suddenly with no warning, I am unable to remove key from ignition switch. It will turn in normal manner but it can not be removed. Any feedback will be appreciated.

There is a cable running from the shifter to the ignition switch. It is mechanical connection with no relationship to the micro switch. The usual problem is that the button on the shift knob cracks along the pivot, the button binds and does not fully retract, preventing the cable from returning to the PARK position at the ignition switch, preventing the key from returning to position 0. The repair is replace the gearshift knob or disconnect the cable at the shifter end and leaving it in the folly retracted position.

The reason for this is because the car does not see that it is in park. That is why it would work if you shift out of park and back in. Do you ever have to press the micro-switch to get the car out of park?
--
FCP Groton

Thank you to all who responded. The problem was the button on the shifter not releasing. Once I was able to get it to snap back it has been working. So far. Thanks again.

I have the same thing. Sometimes it lets go if I turn it on and shift out of part and back again.

http://www.brickboard.com/AWD/volvo/1365138/V70/ignition_key_stuck_switch.html
--
The more I learn, the more I forget. So why learn?

My '99 V70 did the same thing, the button on the shifter doesn't pop back out sometimes. A little cleaning and lubricating, it's good as new. As usual, Klaus' advice is impeccable as always.
IPD sells a replacement switch, with good instuctions if this doesn't work.

Best of luck,
Chris