Regards no.2....
If the ignition switch is faulty, wouldn't you have lots of other issues e.g. it won't start?? This might seem stupid, but have you checked EVERY fuse, as the MK2 has some fuses controlling things you wouldn't expect as well as what they are actually supposed to control.
And yes, changing the ignition switch is fiddley. You can't get to the locking screw as it faces towards the pedals, so you either have to bend a screwdriver round to fit, take the steering collar thingy off (if you've got a later model) or take the steering column out. I did the later, which is easy except for getting the column back in the universal joint again.
Have a search for more info.