Summer's here - roof
Join Date: Jan 2006
Location: United Kingdom
Have you tried all the keys you have? If it is the same behaviour with them all, then it is likely to be the same issue I had a couple of years back - it was the halo (or so called inductive loop in that link to alfaworkshop) around the ignition barrel that was playing up. I'm sure a specialist could sort you out with a replacement or I have a spare should you need that.
Otherwise if it's just one key then that is your problem, but as stated above the immobiliser will not allow the enginer to start until the light goes out!
History - 1999 156 2.0 TS - 1999 GTV 2.0 TS - 2000 GTV 2.0 TS, 2000 166 2.5 V6 24V - 2002 147 2.0 TS - 2004 147 2.0 TS
Current - 2001 Spider 2.0 TS, 2006 Jaguar XK8, 2006 VW Golf GTi