$1500 for an ignition switch??? On what planet? The only way I could remotely imagine replacing an ignition switch to approach that price would be if it wouldn't turn at all and they had to sit there for 8-12 hours with a drill to drill it out ...
The tumbler and new key is about $75; I don't know how much the whole switch is but shouldn't be THAT bad! I would start there, personally, since it is fairly obviously bad and you need to replace it anyway. It MAY solve your ABS/ASR light problems. If not, need to have the codes pulled. This symptom can be caused by MANY different problems (like a faulty $15 brake switch in my case).
Good luck!
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Steve
'93 400E
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