Originally Posted by JoshCF
Good news, the problem has been fixed - thanks to my dad. He removed the center console and did in fact isolated the trouble to the shifter position switch there. He was able to fix it saving me the $180 the dealer wanted for a new shifter assembly. The problem was a sticky mess under the console caused by spilled soft drinks (and maybe a beer or two, and no I don't drink and drive any more) and other crud. After a couple of hours of cleaning and re-assembly everything is working correctly again. Even the gear selection indicator (the little red line showing which gear the shifter is set to) works like it should again. The sticky mess must have been interfering with the gear selection sensor. I would never have thought this would have prevented the ignition key from moving into the lock position and preventing the key to be removed. But I guess it makes sense when you think about it. You don't want the steering wheel locking before the car is in PARK as the car could still be rolling. "Thanks, Dad!"
I have an '07 Focus as well with the same issue. Where did you get your new shifter position switch and is that the actual name for it? I can't seem to find the part anywhere.