There are 2 ways to fix this problem, if the theft indicator is flashing fast when the key is in the ignition your PATS system is enabled, to clear this you need to either diaconnect the battery for ten minutes or bring it to your local ford dealer to clear the codes.
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You would need to trace the the main power feed from the battery to the ignition switch .
Look for some kind of switch it will have a heavy wire going in to it and coming out of it .
Test for 12 volts down the line from the battery to the ignition with a test light hot to ground if the light lights you have +12 v when it stops lighting you lost voltage so then go back and if their is some kind of a kill switch it will be between these points .
But consider this maybe a connection problem or a bad ignition switch .Or just disconnect the anti theft system at the power feed for it .
This is the kind of problem ware more thinking and testing and looking at what you have .Less taking apart is best
In some cases, it's possible to re-set the anti-theft by physically unlocking your car door with the key. The interruption of power is a safeguard measure to ensure the car has been entered by the owner and not somehow bypassed. Using your key should reset the alarm and allow you to start the car.
If the security or anti-theft light is flashing when you attempt to start your car, and the engine does not crank or does not start, you have an anti-theft problem. The system may not be recognizing your key's key-less entry signal, or there may be a fault in the anti-theft module or wiring. There is a reset procedure to stop this anti-theft light flashing.many a times this helps
The reset procedure is as follows:--
Reset the alarm by locking and unlocking the drivers side door.Do this a couple of times and then check it will reset the factory security system .If the reset procedure does not helps then its time to get the anti-theft system checked.There is a short circuit in the anti-theft system wiring.For more detailed help on this anti-theft light blinking issues please click on the link belowhttp://www.aa1car.com/library/troubleshoot_antitheft_system.htm Thanks. you can rate this solution and show your appreciation.
Call your dealer with prof of ownership they can walk you through it . or call a lock smith , Sorry but for obvious reasons I wont be of any other help on this one. PS hope you can under stand . Thank You .
Not much you can do without an expensive scanner and wiring schematics. You can check all electrical grounds for loose or corroded connections that includes the battery. Also check all fuses. Other then that you would need to take it into a shop. I wouldn't recommend a dealership because I feel there labor rates are to high and secondly the car is old enough that any half way decent shop should be able to fix or at least diagnose the problem. Hope this helps and good luck.