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Under the dash and on the steering column, you'll see the long 16 (approx) pin electrical connector. Remove the electrical connector by taking out the 3/8ths small bolt. You'll see a linkage rod that moves back and forth that coincides with the key switch. When you move the rod back and forth the switch should move as well. This should help you determine if the rod may have slipped or jumped the slot it rides on in that long electrical connector. It's been a while since I've been in that area but that was a problem I ran into when I reassembled mine a few years ago (because I did not align that rod with the intended slot in the connector). Good luck.
When I saw Jim Shea respond to your problem, there is no use me getting involved. He is truly the expert on steering columns. He rebuilt my completely worn out column on my 78 about 5 years and did an absolutely professional job at a reasonable cost. You are in good hands .............
You do know that on 1977 thru 1982 there is a small lever next to the ignition key that you have to trip in order to rotate the ignition key from OFF (which shuts off the engine but does not allow you to remove your key) to the OFF-LOCK position (which allows you to rotate the ignition key further; locks the steering wheel; and allows you to pull the key out of the lock cylinder.)
Jim
Last edited by Jim Shea; Oct 15, 2011 at 08:58 AM.