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In June or July I began to have similar issues: headlights were dim, AC wouldn't work or would only operate at low speed fan, no control, etc. Finally hit on the ignition switch. Replaced the electrical switch component (behind the mechanical key switch / steering wheel lock) and fixed ALL the problems I had. Easy to do but difficult to get to due to the contortionist requirements and old eyes that don't focus at the distances involved. Nevertheless I did it!
Dissecting the old switch revealed only minor 'issues': seems the plastic shell was somewhat twisted and slightly cracked. Evidently this resulted in poor contacts as the switch was activated which caused intermittent operation of the various circuits. Replacing the switch solved that.
On other blogs I've read that the mechanical switch should be replaced too. I wouldn't agree at this time since replacing the electrical component (it was replaced with a black body switch btw) seemed to improve the overall mechanical action of the key switch too. I personally think the torque action from the steering wheel puts stress on the mechanical component which isn't healthy for the mechanical key switch and maybe the electrical switch as well. Just my 2 cents on the item. But definatly replace the electrical switch. Everything I've read indicates it only gets worse until you can't start the car, remove the key, etc. All bad things.
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