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The cable is there to lock the key in so you cannot remove it when the gear selector is not in P. Just put a drop of oil or liquid graphite, no WD40, on the cable end to help it out.
Your problem sounds like it is more on the other side of the steering column. The electrical portion of the switch. Remove it and then wiggle the key portion around. The key should move freely, if not then oil fron the drivers side of the column.
The ignition switch can be rotated with a screwdriver. If the battery is connected, you will be able to start the car. But just check the movement to posII. A little blast of dielectric grease should help.
The key portion of the switch cannot be removed. It is installed with two hardened steel break off bolts. The bolts need to be drilled out to remove the switch, which you don't want to do.
Klaus
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Just driving a 1998 V70R :)
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