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Burco,
Did you resolve your two questions from a year ago?
The mechanical ignition lock provides detente for key position and returns the spring tension to return to the engine on position after turning to start the engine. The electrical ignition switch has a detente to isolate the key position for each of the positions the switch can land in including the temporary engine start position. KP 0 - III I guess? Unsure now.
1. Yellow wire to connect to the cluster is the car speed sensor signal out to the cruise control; the two spade connector with the rubber hose section to provide some short or unwanted electrical connection.
2. The ignition electrical switch at the backside of the lock. Maybe if the donor came from a 240 with lower miles or fewer turns or the operator did not use some huge giant and heavy key chain, yet a heavy key chain wears the key lock first an as it wear cause electrical switch wear.
Find wiring diagrams here:
http://www.v8volvo.se/mekartips/volvo/index.html
Hope that helps.
Duffed
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