turn the key and nothing happens sometimes

also posted this in the X3 forums, but this gets more traffic and the electrical systems are the same-

turn the ignition, nothing happens at all (lights, blower motors, radio etc all work) then if you take the key out and try again it works then 90% of the time (sometimes it takes 3 tries) this does not happen all the time though, sometimes there will be a 1-2 second delay, other time it will crank over like nothing is wrong.

also I took the key out before and the lights stayed on, had to start and shut off the car again to make it turn off, and sometimes I get random dash dimming.

Im thinking ignition switch, your thoughts?

Battery reads 12.2V at rest

replaced the ignition switch with no luck, still would not crank every 3rd or so try, then I remembered my grey plastic key, started it about 10 times with no issues, guess my transponder is going out on my main key?

How old is the battery?