I too have a Peugeot 106 (Y reg) and the key keeps getting stuck in the ignition barrel. Although the car is old it has less than 50,000 miles on the clock.
Does anyone know if the key problem is an issue with Peugeot vehicles as I am considering changing the car next year and if it is won't consider another Peugeot.......

Lesley Bell, August 2010

It could be the plastic wire connection block at the end of the barrel (scrap yard job)

simon, August 2010

could be barrel on its way out, try spraying some WD40 into barrel.

hope it helps, August 2010