2002 v70xc AWD Key will not turn to the starter position?

[petv70xc]

I got in my car this morning and the key would only turn to the first position. It will not turn enough to engage the starter. I've run through everything I know and have checked the manual as well. It's like the steering wheel locking mechanism is stopping the key from turning, but the wheel is no longer locked after the key is turned to the first position. Am I missing something?