Just had this issue with a friends car and this video helped fix the problem, so re-uploading it.

For me the car was a keyless Ford Focus with the "Steering locked - Retry" Fault showing.

My friend violently shock the steering wheel whilst I repeatedly pressed the Power on engine start button and it worked like a charm. (You have to get really quiet violent with the steering wheel, in our case)

Hope this helps someone else :)