I know the code to the radio and have to re-set it. Does the ignition key have to be in a certain position? What exactly is the process I should follow to get the radio re-set.

I should know by now, since my car spends a lot of time at the dealer...

transmission
brakes
tune up
repair of front passenger seat (stuck on full recline)

and the list will go on I'm sure!

The following radio instructions are for the non-computer screen type:

To reset the radio code:
1- Turn ignition on
2- Turn radio on; display will read "CODE"
3- Enter your 5-digit radio code (the numbers will not be echoed on the display screen); radio will switch to FM
4- If you enter in a wrong number, go ahead and enter more digits so that a total of 5 have been entered; radio will not operate; re-enter the correct 5-digit code; radio will switch to FM. If you fail three times, you have to leave the radio ON for 1 hour before you can try again.

Sorry you've had so much trouble. If you're a pretty handy DIYer there's lots of help available. Here's one really good website:
http://www.nmia.com/~dgnrg/page_2.htm

Also consider joining www.roadfly.com where there is a LOT of help. Good luck.