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I found several posts about various security light problems similar to my 2002 Z28 and thought I'd post my experiences with it for others.

My SECURITY light came on one night and stayed on solid. The car continued to start and run fine for about a month. Then on Christmas eve as I was getting in the car to take home a load a BBQ, the car wouldn't start and the SECURITY light flashed. Turned out to be the famous broken wire that reads the key resistor. $750 later I was on the road again.

Apparently the key sensor circuit will go into a fail-safe mode if either an open or short circuit occurs. I suspect mine was in this mode initially which explains my ability to start and drive the car for so long. I'm not sure what eventually happened though, but it left me stranded.

Apparently the tilt-wheel pivot gets loose allowing the column to move around and stress those wires. My advice - if you SECURITY light is currently on, get it fixed while it's convenient to do so. Otherwise you can probably count on being stranded at the worst possible time.
 

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Yep it can be a pain. Hawk's Third Gen is less than an hour from me and I've been meaning to run by there one day so they can just disable it in my PCM altogether. Depending on where the issue is you can get it going with a resistor for a few bucks or get a module that does a full bypass of the system for $179. Of course none of these methods retain the security system.
http://newrockies.com/the-problem-and-the-solution/
 
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