1983 300SD:
I experienced a stuck ignition lock and went about following the Diesel Giant guide to fix the problem. I was able to grind down the steering lock pin, remove the assembly, but could not get the key to go to position II. (the necessary position to insert the pin and remove the security collar.) I worked on getting the key to turn for a good hour, using many methods listed in the postings here with zero success (sander for vibration, turning upside down, using wd-40, using valet key).
I then tried removing the electrical plug on the back of the unit. I drilled out the pins on the shroud to separate the electrical plug, therefore hopefully releasing any more pressure (it might help with overcoming the stuck pins??

) Turns out, I was wrong and now have an ignition lock in the current state below (see picture). I sincerely doubt the tumbler will ever turn with the key.
Any ideas of what to do now to remove the security collar? Anyone ever try and cut it free with a dremel tool? I'd rather not have to buy a replacement ignition housing as they are going for around $200!

You really have to hand it to the Germans, definitely one solid ignition piece.
Please help!