I would pull the plastic cover around the ignition off and see if the wires have been cut/ screwed with...Not sure if 97's had the chips in the key's...I would assume so, but one way to tell is to look at your key and see if it has PK3, or at least the PK which stands for PassKey, that is the chip system used in our cars....If it was me I'd keep my key, and get the keyfob replaced! With the remote fixed you won't have to deal with the door locks at all. That red blinking light by the windshield is just a deterrant, if its unplugged it doesn't matter, mine doesn't work either. I'd cross that bridge with the ignition problem after you determine if it had been messed with before, or just old and in need of replacement.