Thank you for the responses! For the night I gave up, put the car in neutral and backed it out of the garage...while maneuvering the rest of the cars in the driveway around it. No biggie there, made them all fit like tetris.
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My 300D and 240D both have a black metal ring that unscrews. I can't picture how you are using needle nose pliers on the round smooth ring.
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I was unscrewing the black ring when this occurred. I believe that the paperclip I was using slipped out of the pawl without me noticing, then when I was unscrewing the metal ring (or is it plastic coated? don't know) it caught again on it and now won't move. The key is jammed in the OFF position so I can't get to the pawl again. I was using pliers because I got big fat clumsy fingers! After this frustration, the thing is starting to get chewed up though.
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It sounds like the "ring" or "collar" or whatever you want to call it may be screwed out far enough that the "head" of the key is hitting it and that's keepin the key from going all the way in.
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Its not quite that far out--I can get the key all the way in, I just can't turn it.
I'm thinking that perhaps the tumbler broke as I was taking it out in a bad stroke of luck.

I had to borrow my father's car to get to work today, hopefully I can get this fixed soon. Has anyone simply drilled and gutted the tumbler? Would it be easier than taking off the steering wheel, dropping the column, etc? Would it even work? The more I think about it the more I come to the conclusion its my only hope at this point