Sounds like "dealer city" to me, Buddy.
1. The red LED on the key means "nothing", almost. It is a battery check function, and is also used as an indicator for when the key program is changed from "Global" to "selective", see owners manual.
2. I am not familiar with any way the key will release to be turned unless the key and EIS exchange pleasantries. No other outside influences will release the EIS, if you got it to rotate by somehow jumping something, i'd like to know what it is that you are jumping.
3. If the remote is not unlocking the doors, it probably won't lock the doors either, so the alarm is probably not actually being "set" to begin with, which is why it isn't going off. Do the locks work with the console switch? Since you can't get power to all circuits, you probably don't know for sure. Get back to me on this, I'd like to help, but really i think the car needs it's "mama".......Gilly