Brothers truck a 1987 ford f150, the horn and cruise were not functioning and key was not smooth turning from lock to start. Replaced the key ignition, also had removed steering wheel and blinker assembly because of 2 wires seen at plastic blinker assembly that were broken loose. Resoldered wires and reassembled all. Now when trans. Is in park shift indicator shows reverse. The key does not make starter crank engine, can crank from solenoid. When engine is running the turning of steering wheel the horn will blow. So 3 things are wrong, horn blowing, shift indicator not correct position and starter will not engage. What is wrong?

SOURCE: at times cranks and runs fine other times it will not crank

Hello edspring1...the little key chip you mentioned is the onboard security system for your firebird...GM called it the VAT system..it's possible this could be the cause of the no start conditions, sometimes they will reset if you disconnect the negative battery cable for 30 mins.
I really dont think that is your problem though...under the steering pillar...there is a "slider" type ignition switch...meaning...the terminals slide togather to make contact when the key is turned...these darn things get worn to a point they start arching and eventually wont make contact at all...i replaced one last week on a 95 firebird that had the same problem you are describing now.
i'll post a pic of the slider set in position for a tilt steering and non-tilt column....note the difference.
Good luck...i hope this helps...please rate me a fixya.

SOURCE: key not turning, steering not locking, trans in

GM has had problems with the ignitions they use for years. Only option is to replace the tumbler assembly (ignition switch). If you have security installed theirs a special procedure to relearn the key.

SOURCE: turn ignition but engine won't roll over

that would be the throuout shaft faller (change the starter ) see if it helps if you hit the starter as someone else turns the key.