there are a gazillion threads on vats in here - use
there are also tech articles:
http://www.thirdgen.org/vats_passkey_system http://www.thirdgen.org/vats
Sounds like your ignition cylinder is worn maybe causing the no need for key issue
Inside the cylinder, there is a spring-loaded contact on each side that contacts the sides of the pellet on the key - the springs wear out and thus contacts don't make contact with the pellet - you can bypass vats or replace cylinder. If you replace cylinder, take new dummy key AND old pellet key to ACE Hardware, and get a pellet key cut using the new dummy key for the cut, and using the resistor value from the old pellet key - they are @20 at ACE.