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The cable connection between the key assembly and the ignition switch may have come loose at one end, or the switch is not installed at the correct spacing down the column, or the switch has come loose from the mounting bracket on the column.
My mechanic disconnected the security section because my key I use to start the car had the security spot on the key was loose and would not work in the ignition It was going to cost a lot for a new set of keys so he took the security section out for a lot less. As he said an older car does not need security.
Sounds like a problem with the security. It immobilizes the fuel injector circuit when the security is on.
Try this: turn key to on, and wait several minutes (up to 30 minutes) to see if light stops blinking. If it does stop, turn key back off, then try to start it. If the security light goes off, it may have reset. If it does not stop blinking or staying on steady, the dealer will charge outrageous prices to fix it-possibly over $800. Google "passlock bypass" or "passkey bypass" or "VATS bypass" to see your options. A site called newrockies sells a module (about $200) that forever bypasses the whole security system.
This is a problem in your antitheft system. The security light is only for this system. You will need a new key, ignition, or TDM. (THEFT DETERRENT MODULE) The hard part is determining which of these is the problem. You can also bypass this system and use the existing parts. You only bypass the security feature. This link explains
The 2000 saturn runs the passlock system. Unlike VATS its predecesser, this system is much harder to bypass. The old "resister" trick that many people still do, does not apply for this system. So lets start at the basics. The security light flashing indicates 1 of 3 things. The problem in your passlock is either in the KEY, IGNITION LOCK CYLINDER, or WIRING before the Theft Deterrent Module (computer). This means you could replace the key or the ignition (whichever is to blame) and you might be ok. You would have to reprogram the key to the ignition. The other option is to bypass it. Unfortunately that costs money also, but honestly no more than a new transponder key and far less than a Lock Cylinder. Just trying to give you all the options. Here is a link that explains the SECURITY problem rather well and gives some good tricks and options for fixing this yourself permanently
Could be the key itself, the lock cylinder, or the Theft Deterrent Module that controls the whole system. This link explains the system and offers a very good way to just bypass the system permanently... http://vatspasslockpasskeysecurityhelp.yolasite.com/
if the security light is blinking, it's the VATS system not recognizing the resister pill in the key. I currently have the same non start issue, but I bypassed the VATS ignition key but the car still doesn't start. My security light acts like it should. It comes on when the key is inserted and goes off after 5 seconds. If it blinks, it's not seeing the right value.
Google VATS system bypass. Resistors cost me about 3 bucks at radioshack.
I experienced this problem, intermittant failure to start. This procedure must be done with the truck RUNNING.
Remove the cover off of your ignition switch. On the top there is a small wire connector that, once the truck is running, should be disconnected. This will turn on the 'SECURITY' light. All will be better, except the security light will be on at all times, much cheaper than replacing the ignition switch, however.
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