2004 beetle remote start key sense

It shouldn't matter which wire you use, Green or Brown.  You want to do it with the wraps over the center

I usually use a drop of Hot Glue to start / secure the wraps to the key-head then stealth it up with a full wrap

Yes, if the immobilizer system sees two transponder keys at the same time, it can cause problems.  The real test of your wrapped key would be via a remote start, not by using a chipped, non-programmed, key to start the car.  Is it possible to obtain a plain metal key ( no chip ) at the local Hardware store?  ( I usually do this with standard American vehicles to use as a spare hidden under the bumper.  It will open the door but not start the engine. )  A plain key and your permanent transponder bypass would work but as you already mentioned, the vehicles engine immobilizer system would be in-op and the insurance company might not pay off if it is stolen / recovered damaged, etc... 

Help!!! I can't get it to read the wrapped key at all.

I wrapped it with 5 loops, 7 loops & also tried 11 loops.  Using 24 Ga stranded insulated wrap wire.

Installed it first on the green wire of the GREEN/ brown twisted pair near green connection to cluster.

Then installed it on the brown wire

Then installed it between brown and green cluster side (both wires cut and tied into)

Then installed it between brown and green other side (both wires cut and tied into)

Do I have to twist the wires together from the key to the connection to avoid signal loss? What else can I try??

Any help would be greatly appreciated!!!

How are you testing the key-wrap?  Did you obtain a plain metal key ( without transponder chip) ?

Why not reconnect the Green and Brown wires ( soldered connections ) back to normal and try doing it as shown in the iDatalink install guide.  Do a key wrap and then do the wrap of the ignition switch barrel.