Sounds more like a starter problem than a switch. We rarely have to replace ignition switches. Use a volt meter and check for voltage at the start terminal on the starter solenoid. If you have voltage there, the starter or solenoid is at fault. Being that the starter is so close to the exhaust manifold over time the heat really cooks the starter. BTW, the red goop is most likely dilectric grease used to lubricate the switch and over time it starts to seep out of the switch.
ASE Master Technician, Lead Technician for Deutsch American Inc. Over 6 years of Import experience-specializing in German Automobiles.