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You have two problems. The first is probably the ignition switch, easily replaced. After being in POSII and the lights go out, try wiggling the key slightly. If the lights turn on again, replace the switch.
The mass air flow problem is associated with a leaky intake hose. Usually the accordion part of the air hose between the air filter and the throttle body gets a leak in it and the engine cannot control the amount of air it is getting and runs very lean. Too lean, to the point of burning valves.
Klaus
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(V♂LV♂s 1995 854T, 1998 V70R)
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