Wow. So does mine.
This appears to be a common problem.

 

I know this thread is about a year old, but my 2001 XKR is doing the same thing. Does anyone have a remedy? Is this a memory module issue?

 

I can't answer your question but I can tell you my '97 XK8 w/48k miles does the same thing. The dealer records show that they replaced the steering column motor twise...
Good luck finding the answer, we all will be very interested in the fix.....

 

Add my '04 XKR to the list. It works about 80 percent of the time but when I do have to do it manually, I get that "moves a half inch then hesitates" issue too.

 

Another one of Jaguar's several common problems. The steering wheel position potentiometers and lubrication of the moving parts are the problem. I suspect that the lube problem agravates the burning of a resistance spot on the pots. Many discussions on the subject with the only solution to replace the motor/potentiometers.

 

According to my owner's manual the hesitation on steering wheel movement is a safety factor when the gear lever is out of the park position. It should not move continuously while the car is in motion. Same for the memory seat feature; it will not function unless the shifter is in the park position. Albeit, mine does not work half the time in park. I have the memory buttons 1 & 2 set for the same position. When button 1 does not work, I press button 2, then button 1 again and it might work. Lincoln (Ford) products use the same features. I wonder if they are having the same issues. At least the steering wheel always raises up when the key is removed from the ignition.

 

When I first addressed the problem I set Memory 1 and 2 on either side of the stop spot. Then alternated 1/2/1/2/etc about a hundred times. That helped with the percent fail but did not resolve the issue.

It's just another thing to love about these cars.

 

It is intregrated as far as the parts counter is concerned.