If you haven't seen the front page of the Brickboard lately, a member in the 240 section has written a procedure to make the electrical portion of the ignition switch work again.
I did this many years ago and it is not hard. I just used an emory board to clean the contacts and electrical cleaner to clean up the dirt.
http://www.brickboard.com/RWD/volvo/1295954/220/240/260/280/used_old_ignition_switches_problems_refurbishment_switch_intermittent.html
Save $40 and a trip to the dealer. Unless the switch wobbles a lot, of course.
Klaus
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I still miss my 164 and my 854T. Just driving a V70R :)
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