Sorry, but as far as I know, the dealer is the place to go. SOmetimes it is a necessary evil. Even if you get the laser cut done properly, you still need the dealer to program the key (that is, if they cooperate), which will not be free.
Dealer prices for E36 keys aren't too bad. I paid about $35 for a key for my 328i. It was the non-lighted version -- seriously, why do you need the light on your key?
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