I'm not sure about the earlier gen 4's, but I had a similar problem. Try turning on the ignition, tilting the steering wheel down and then start (or ignition off tilt down then ignition to start). This worked for me. Turns out the sensor that reads the key code was bad. If the tilt wheel trick works then go to a dealership and get it fixed. There is no way to bypass the system and if it fails completely you cannot start the car. I had to get towed to a dealer at this point. I think the fix ended at about $130 plus a tow charge. Hope this helps!
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