OK I did a bit more on this and I am about 90 percent sure that the EWS ring detecting the key is what works the chime. I had the lock cylinder out and was going to do some measurements and maybe get the EWS ring off the lock cylinder but then ran out of time again and ended up just lubing the lock cylinder while it was out and spraying some lube into the locking collar and of course everything works fine again! BTW the chime does quit after a few minutes even with the key in and the door open. As far as the sticking lock mechanism and not being able to get the key back in I did discover by pushing in on the center metal part of the ignition lock cylinder ( gives a bit of extra push to the part that the ramps on the back of the cylinder are pushing) it will release the steering lock if it is stuck. Pushing in on the key instead of pulling on it while turning the ignition off makes a difference too. This applies more for the "can't get the key back in" so I'll try to post there as well.

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1988 325is (purchased new) sold
2004 X5 3.0 2005 X3 2.5
2008 X5 3.0 (new to me)