It's a general problem with the car - you're not alone. My X Reg Fiat Punto's power steering has completly gone now, after 6 months of the warning light appearing and disappearing & me praying that it won't fail!
The answer is rather expensive. There's a few things you should try before taking it to a garage and getting the full whack done.
Try cleaning the connections leading to the battery - this can sometimes cause the power steering to cut out if they are not cleaned properly.
Alternatively, it may be the TDC sensor - i don't know much about this part of the car but search "fiat power steering problem" on preloved.com and they explain all there.
Last but not least this is an ECU fault. You will need to get the whole ECU unit changed which can (if taken to a garage) amount to around £600. Alternatively if you know someone who is good with cars - on ecutesting.com you can buy the units and fit them yourself for £220. This will resolve the problem.
Superstar89
January 2009