that ignition switch looks like a bear.the steering column has to come out i think.on my sons 96 millenia non S,the car would start fine but when he went to turn off the car the starter would KICK in for a second when you turned the key back,it would go to START positions,it was kicking the starter on real quick and go EEEK!!.was going to change the swith but looked like too much to mess with ,and expensive, $100 for a switchi think.i just rewired the switch ,without taking the column out, so the START position was diabled and we ran a KILL swith. no more starter grinding. the tcs/limp mode is probably a vacuum leak AND the 2 selonoids KENIN talked about.another thing,one time i was digging back there and got 2 solenoid connectors swapped.i thought they were keyed and you couldnt swap them so i didnt really tag anything, but i have 2 connectors the same and while they were swapped it would do tcs/ limp mode.i think its the egr ,and one of the abv solenoids.took awhile to figure that out.had the 1540 and 1525/26 and i dont remember the other code but they all vanished once i swapped the connectors back.good luck

i would guess neutral safety switch. and the ecm is behind the radio. good luck on that, not a fun job

Hey kennin ! thanks 4 ur fast response!! let me bring u up to date ... after my post I went to my car trying to pin point the trouble & came to this: moving the ignition switch on & off makes the ck engine light to come on .. then I can crank & the engine start w/o any issue. That rules out the neutral switch ! Now, does any one can lead me to a schematic or have any experience with this same problem ??

ignition switch
 

sounds like the ignition switch needs to be replaced. its wearing out and not making contact inside all the time

Thanks 4 ur input rocoe ... Definitively, I'm qualified to to do a change of ign switch ... if necessary. Even a jumper in order to rule out other possible causes. But my neighbor, who owns a BMW-only repair shop, told me some test must be made to rule out the pcm...have u heard about that ??
PS MODERATOR..I opened a new tread with the same trouble..It's possible to move kennin & rokoe comments ??...:cool:

oh rocoe !
ign switch wearing at 49k ? ... will try contact cleaner just 4 a try..then ebay for an ign switch...just in case.. thanks ..:cool:

Well, I removed the ign switch, inspect it & test it & it was ok...Testing the wires found 2 ign leads ..the black/red tested ground-negative which leads me to believe that it goes to a relay, prolly to the ecm...another thing I discovered is that there's no need to move the ign key to make the cel go on..just wait a couple of seconds . I think ECM is monitoring the ign circuitry & some sensor is not reporting as needed ... crank sensor ?:cool:

Rocoe.. I don't know how good is ur back but to remove the Ign S u need to remove 1 screw...lay on ur back & look for ign assembly (use ur tactile powers if needed) remove the Phillip screw, hold the plastic ign switch & move it up-down till it pop out of the casing ...as always removing everything in the middle helps 4 an easier job ... :cool:

BACK TO THE ORIGINAL DISCUSSION ON THE NO START... I found the problem!!! There are several grounds sharing a ground harness. It's located by the EGR. Just one bolt holding these gorunds down. It was loose & no shiny contact points betweeen surfaces. So i cleaned up all contact surfaces & cleaned bolt and WAa BAAAM... The car starts everytime now & A/C display is working...