As MIJ suggests, sounds like your ignition switch. Just had a similiar problem with our 96 850. The car would not shift out of Park, the ABS light was on and all kinds of screwy things with the lights (no headlights at times etc. Wiggling the key generally worked. The electrical portion was at fault, not the part that the key fits. It is fairly easy to replace and directions are on Bay 13. You need a special tool to make your life a lot easier. The torx screws are located at the bottom of a deep recess so you need a loooooooong torx screwdriver (T 10 or 15 I think, can't remember which right off) to reach them. I found mine at Sears. Once the cover surrounding the steering column is off, just remove two screws and switch the units which costs about $47. at Groton if I recall.
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