I had a very similar situation myself a few months back. Like you, I too have an early model P32 (I was the envy of all in my area, as I was the first on the waiting list to receive the elusive P32 a couple years back).
The problem with mine was a broken mainspring. It would put a healthy dent in the primer, but not quite ignite the ammunition. I noticed a change in the overall "feel" of the trigger as well. In addition, the slide would have to be racked in order for the hammer to reset, but ignition was still a no-go.
Trust me, if there's a silver lining, it's that Keltec has an excellent customer service. The turn-around time for my P32 was about a week (!) and I received an additional blue carry-case and trigger lock along with an apology. Who else does that?
On lazy days, I can be found carrying my P32 in lieu of my K9.