I HATE 99 S80's, but...
Get into your trunk, and disconnect your battery for about 10 minutes, this generally resets most "non-hard" codes. However, the key "not turning" is not an immobilizer problem. That would be an ignition cylinder problem. Is the car in park? Is the steering wheel locked? Try locking (once) and unlocking the car twice, make certain the car is in park, wiggle the steering wheel, and try again...after reconnecting the battery. If that doesn't work, inquire about the services of a local priest with holy water, and a VooDoo shaman with gris gris. If after all this your ignition seriously will not turn, you'll need to visit a repair shop.
Sorry,
Chris
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