Right. I got this fixed in the end so I'm going to write it down now while its fresh in my memory.
I had to change out the entire ignition housing. I'm in the UK and got this from
https://www.stevensvwspares.com/(I checked with the part number when I ordered).
Remove the steering wheel using:
https://www.pelicanparts.com/techarticles/Volkswagen_Golf_GTI_Mk_V/87-SUSPEN-Removing_Your_Steering_Wheel_and_Airbag/87-SUSPEN-Removing_Your_Steering_Wheel_and_Airbag.htmthen use:
https://www.pelicanparts.com/techarticles/Volkswagen_Golf_GTI_Mk_V/90-ELEC-Steering_Column_Stalks_Replacement/90-ELEC-Steering_Column_Stalks_Replacement.htmThis gets you down to the key cylinder. Note that its alot easier if you pull the steering column down and towards you as far as it will go. The upper part of the plastic cover behind the steering wheel sort of pulls up and towards you. I started trying to pry the cover from its rear, then when it was off could see that its best to do it from the front.
After this I removed the key cylinder using:
https://www.pelicanparts.com/techarticles/Volkswagen_Golf_GTI_Mk_V/91-BODY-Replacing_Your_Ignition_Switch_and_Lock_Cylinder/91-BODY-Replacing_Your_Ignition_Switch_and_Lock_Cylinder.htmI did this to inspect the inside of the lock mechanism without removing the entire thing, but in the end no amount of cleaning it out would stop it sticking/jamming so I opted to remove and replace the entire thing.
At this point its pretty much stripped down, i.e. the control unit is off, slip ring, stalks etc. You're right down to the ignition housing and its just a case of getting the thing off.
Figure 10 of the 'Replacing_Your_Ignition_Switch_and_Lock_Cylinder' page states that 'If you are replacing the whole assembly, you will need to drill out the two shear bolts that hold the assembly in place.'
This is the killer. Numerous comments on webpages describe how you don't need to drill these out - and I didn't either. With the stalks removed you need to remove just enough plastic from the 'frame' behind where the stalks clip on/attach so you can get a chisel onto the sheer bolts and turn them.
This was the best image / guide I could find and got me through it (probably took an hour - being very careful). Scroll down towards the bottom and you'll find a nice person thats put in the photos of the plastic they removed. I just copied this - taking time to understand why they'd done it.
http://www.golfmkv.com/forums/showthread.php?t=181315The sheer bolts come undone pretty easily; especially once you've got them turning just slightly. I think I sort of got the chisel on them and they took maybe 20 good hits to get them turning, so its not too hard once you've got through the plastic in the right places.
Next I got worried as the steering lock had come on and I worried that this might 'lock' the ignition housing in place (hence my original comment here). But once you've gotten this far the steering lock does nothing to hinder you. There are two plastic tabs holding the ignition housing in place - to the left and right ends of it; behind the plastic you've removed / behind where the stalks clip on. These push back easily and the ignition housing just drops down and out.
Putting it back together with a new unit is just a case of reversing all this. With the sheer bolts just use a hack saw to cut grooves in the top and screw them back in with a flat head screwdriver.
Thanks all.