I have a 1998 V70 and the other day my daughter when to drive it and the ignition key spun completely around in the ignition switch and nothing happened. When I went out to check, everything worked fine...however, if the steering wheel lock locks the wheel in place and you insert the key and turn it, it will spin completely around. If you move the steering wheel slightly and turn the key it works as it should. Is this a wheel lock problem, ignition switch problem or what????

 

The entire lock assembly is bad. Pretty common failure.