Birmingham made their task even more difficult for themselves after Bruno N'Gotty aimed a punch at Alan Lee after Ipswich had taken the lead for the second time.
David Dunn, in particular, had a game of mixed fortunes for Birmingham as he was at fault for both Ipswich goals in an indifferent second-half performance.
The former England player, however, redeemed himself with a face-saving 85th minute equaliser to the relief of under-pressure manager Steve Bruce after he had earlier set up Dudley Campbell's first goal.
It was a disciplined performance by the visitors but Ipswich might well have found themselves in arrears in the opening minute when Cameron Jerome produced a good effort which was only just off target.
City's Radhi Jaidi then saw his powerful header cleared off the line by Castro Sito.
However, Ipswich then began to take control of the match due to the inspirational play of their skipper, Jason De Vos.
The former Canadian international was commanding and his presence did much to inspire the Tractor Boys. His strong play was the reason neither Jerome nor Campbell could make any impact in the first half.
Ipswich carved out a couple of chances. Gavin Williams produced a powerful long-range drive, but Mark Noble's miserable effort lacked power to even trouble Maik Taylor.
Birmingham's problems were not eased four minutes before the break when they lost the services of Jaidi with a head injury following a clash with Lee as both players went for a right-wing cross.
As if to highlight Birmingham's shortcomings. Neil Danns made his first break of the match two minutes into the second half following Dunn's throughball but shot wide as he closed in on the Ipswich goal.
Dunn then produced a complete howler when he casually knocked the ball gently into the path of Lee who whipped his shot past a helpless Taylor in the 48th minute.
Noble went close to adding a second goal and should have done better when he latched on to Darren Currie's cross midway through the second period.
Birmingham finally managed to level the scores in the 74th minute. Dunn atoned for his earlier mistake with a low shot which Lewis Price fumbled and the alert Campbell was on hand to shoot high into the net.
But Dunn was again involved in Walton's 77th minute goal which resulted in N'Gotty hitting out at Lee.
The former Blackburn player displayed some welcome aggression and was on hand to snatch the equaliser following McSheffrey's last ditch free-kick four minutes from time.