2004 bmw x3 ignition bypass

I found some information on doing a key bypass by using a cut key and wrapping it with 100 loops around key and installing a relay. My question is which wire is the transponder wire that I want to cut into? I have two black wires around the key cylinder. If these are the ones does it matter which one I use? I read somewhere that it was to be a twisted pair and the only ones that I can find are a yellow and a grey twisted pair in the steering harness. By the way thanks for all the help so far! This site is amazing!!! Rick

the 2 black wires are correct, cut anyone of them and install the key in the box bypass

Make sure you use the grey valet key, any other will "talk" to your car and give you grief. P.S. in terms of time it's much simpler to use a DEI 556u and wire it to the European method, i.e. no loop.