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I recently had this problem on my 03 S. This is a known problem and Porsche came out with an updated part for this fix. This updated part requires you to replace the entire ignition switch. I would recommend replacing the entire ignition switch which is a $175 part from Porsche.
You can replace just the electrical part, which will run you about $30-40 dollars, but the problem will most likely come back in a few months/years.
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