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To answer your questions - I just did this a few weeks ago in an '04. My assumption is that the '06 is similar. Photos on the web show the center console to be the same.
The ignition switch replacement is not especially tricky.
The WIS says to remove the housing to which the switch is attached. This isn't necessary and involves a lot of unnecessary work. You just turn it over with the shift cable attached. It took me about four hours start to finish. Beware of the antenna for the key transmitter. It's attached to the drivers's side wall of the rear part of the center console. I didn't find any documentation on its removal and it surprised me.
There are a couple procedures for it listed on this board. One may be linked to my name as I had similar questions to yours about a month ago. The Haynes manual has a pretty good description too.
The switch is attached with two torx screws to the bottom of the cast housing below the ignition lock cylinder. It has no effect on your key so don't worry about changing keys. The WIS also says to remove the lock cylinder. That too is unnecessary.
BTW - The cost of the switch for an '04 9-5 was about $150.
IMO it's worthwhile as a DIY job as you get the added benefit of cleaning all the nooks and crannies around the console. I found a lost key to a relative's Volvo when I did mine. That alone made it all worthwhile.
posted by 12.46....
_______________________________________
'08 9-5 2.3t SC
'10 9-3 Stage 2 (son's)
Sold:
'04 9-5 Aero Sport Kombi, Sport Tek, BSR
'03 9-5 Linear 5 spd. Krona Mods, 350 bhp
'03 9-5 Aero 5Spd, Krona, 290 bhp (son's)
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