I'd have to agree. I know the key is supposed to disengage the steering wheel lockout when it's turned, so the lock cylinder is probably broken.
The key itself and the lock cylinder for that matter do not directly make the electrical connections to start the vehicle. The ignition key lock cylinder pushes and pulls a rod (which is on top of my 1985 bronc's column). This rod is attatched to a box about the size of a matchbox and is approximately 18-20" down the steering column. The rod moves a pad with electical contact points across a set of hot points and connections, actuating the required task (start, run, accessory) This box has a bunch of large gauge wires (I think 10-12g.) That are yellow, black, ect. running into and out of it. I would strongly advise not taking this box apart, as there are several pieces in it that are spring loaded!! I made that mistake and fixed it 3 1/2 hours later :blink:
If your electrical system is good, and depressing the brake pedal won't let you put the old gal in gear, then the problem almost HAS to be mechanical in nature. Get a Chilton's AND Hayne's repair manual (good cross reference, but some errors), as there is a specific way to replace the inition lock cylinder. Good luck. B)