I pulled the plug and put some WD40 on a Qtip to clean the prongs from the ignition switch. Unfortunately it didn't fix the problem. I have a new one on order. One of the screws I think you need to take off to get the ignition switch out is pretty deep and it looks like you need to take the left side of the dashboard out to get to it on a 2001. Anyone have experience with this?

Actually, you need to spray the switch contacts which are behind the square plug after you disconnect it. If you look at the switch end of the plug (not the wire end) there are holes which you can spray through to get the contacts.

That definitely helped, thanks Steve. My stereo turned back on, but am still having issues with the rear wiper and a few other things. All 3 of my brake lights were turning on and once I started jiggling the switch, they turned off, so this definitely must be the cause. Now the question is if I can actually install this thing. I am a little nervous having to take out a lot of the dashboard to get to this.

You do NOT have to remove the dashboard

BMW do not design cars so that a simple accessible part like the igniton switch requires major dismantly of the dashboard.

If you cannot access the screw using your tools, perhaps you need to get the right set of tools - such as a right-angled screwdriver, or a screwdriver tip on a ratchet.

Make sure the steering column is lowered and extended to its extremes.

The entire switch is in the steering column. The tumblers are on the right side (where the key goes in). The actual switch is located on the left side behind the plug you have already removed. It is a little tight; but, with the proper tools it is accessable.

If you buy the switch before taking it apart, it may help you to see what has to be dissassembled.

Just wanted to update that a new ignition switch was installed and all of the gremlins went away. It is amazing how many problems a faulty switch can cause! At one point, my horn was turning on the dome light (which actually was kind of cool).

Thanks so much for the help on the board. I have a feeling that this $40 fix would have been a $1500 fix if I took it to the dealership.

Hip, hip, Hurray!!!!

Ignition switch replacement solved alot
 

Lots of problems solved with ignition switch replacement. See video on it in YouTube. This explains it ALL

https://www.youtube.com/watch?v=9NeWUlsQRhA