1998 A4 quattro 2.8l starting issue.. HELP!
 

I have a 98 A4 quattro 2.8l, 5 speed, and figured this would be the place to ask why im having issue starting it.

Here is what I've noticed.

1. All lights come on. It's not a battery or alternator issue.
2. When I try to crank the engine ,with all dash lights on, the battery light turns off. When I release the key from trying to crank the engine, it comes back on with all of the others.
3. I hear a click when I try cranking it over. Not sure if it's the ignition or the starter.
4. It's kind of hit or miss. It did it to me for a month or so before, then the problem simply went away. Now it's back after 4 months of it not being an issue.
5. If I try turning the key from off to start, repeatedly, it will sometimes start. Sometimes it takes 20 mins.
6. Bump starts just fine - I've been trying to park on hills.
7. While I'm cruising down the road, I can turn the key completely off, then turn it back to start and it'll start the engine.
8. It seems like if I drive it more often, the starting problem isn't as bad.

Please, if anybody has any idea on what it could be and could help me pin point the problem, it'd be greatly appreciated! Here is what I think it could be, and correct me if I'm wrong .

1. clutch positioning censor
2. Ignition
3. Starter or solenoid

Thank you for any help.