UPDATE!!! So I went to Ivan's guy (Ene) and had two keys cut for my E36, here is where it gets interesting. He only charged me a total of $60 (2 keys for $30 basically). I brought them home and tested both with no problems at all! I highly recommend going to Ene, he is a super friendly and professional guy. I will definitely be going back whenever I need a key.
P.S. Ene does all the types of BMW keys, i.e. remote locks with chips, even the newer smart keys. He also does the programming too.