I'm reviving this thread, as I still haven't dealt with this.

Here's my next question: Will replacing the lock cylinder cure the steering wheel locking problem? Or do I need to replace the entire ignition switch/steering wheel lock assembly?

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1982 240D - 292,000 miles and counting
Same family for 33 years
Newly rebuilt Monark injectors
Newly replaced clutch
New Bilstein shocks