With the "Cancel" button under the column adjust joystick un-pressed, the auto drive positioner will retract and raise the steering column and slide the seat back whenever the key is removed. When you put the key back in it goes back to the last-used ADP setting (1 or 2). To make exit and entry easier.If you press the Cancel button, it disables the ADP system. Unless I'm mistaken, you can't set ADP memory with "Cancel" on either, so that may be the issue with your memory lights.
If the steering wheel still moves properly when using the tilt/telescope joystick dealie, the problem is probably in the slide-resistors that the system uses to detect positioning.
Here's the reset procedure for the ADP system:
zerothread?id=289906
I know there is a thread or two floating around with more details on the slide resistors, but I can't find them at the moment. If I do I'll post them up, too.