Still sounds like a bad key. Wouldn't be the first time I've seen the dealer goof it. Although for giggles I'd disconnect anything else on the engine CAN bus like the ETC and ABS and see if you can get start authorization. Every once in a blue moon you can have another module on the CAN bus putting out enough noise that the authorization message cant get through.

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90 300TE 4-M
Turbo 103, T3/T04E 50 trim
T04B cover .60 AR
Stage 3 turbine .63 AR
A2W I/C, 40 LB/HR
MS2E, 60-2 Direct Coil Control
3" Exh, AEM W/B O2
Underdrive Alt. and P/S Pulleys,
Vented Rear Discs, .034 Booster.
3.07 diffs 1st Gear Start

90 300CE 104.980
Milled & ported head, 10.3:1 compression
197° intake cam w/20° advancer
Tuned CIS ECU
4° ignition advance
PCS TCM2000, built 722.6
600W networked suction fan
Sportline sway bars
V8 rear subframe, Quaife ATB 3.06 diff

I'd love to find the original spare key......

However my wife swears she put it in the key drawer. And those of you who are married, know that sometimes it's better not to pursue certain lines of questioning... even if you *know* the key never made it to the drawer.

Jim

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14 E250 BlueTEC black. 45k miles
95 E320 Cabriolet Emerald green 66k miles
94 E320 Cabriolet Emerald green 152k miles
85 300TD 4 spd man, euro bumpers and lights, 15" Pentas dark blue 274k miles