Don’t understand the 556U install in Tacoma

I have a 2010 Toyota Tacoma and I'm trying to understand the 556U Bypass install. The install of the 556U shows connecting the black and BLACK/ white wires to the transponder ring wires. Do I actually cut the transponder ring connecting wires and connect the wires to the vehicle (not the ring) side? Or to I splice into the wires leading to the ring (antenna)? Basically connect the Black (colored magenta) and BLACK/ White wire as shown? The diagram (light blue) is the tacoma wiring loom for the ignition ring. I am assuming I can break down the ring and expose the ant wires. I'm guessing the copper here are the actual antenna wires here: To iterate I am NOT using the wires in the ignition ring loom (VC5,CODE,TXCT,AGND) for anything. Second question- the 556U BLUE (+) Status Output From Remote Start simply activates the 556U on 12v+ yes? So if I wanted to test the function without a remote start unit I would apply 12v+ to the BLUE wire and should be able to start with a chipless key once everything else is connected?

Is there some reason you are going with the Alternate Method #1 install? Typical installs use the standard method. The antenna loop gets placed over the ignition cylinder at the position show. A working transponder chip key gets placed in the 556U with the chip area under the pickup coils. The Red wires gets +12V constant and the Blue wire connects to GWR, Status Output or (-)IGN3 depending on the R/S unit. As a test you could ground the Blue wire.Soldering is fun!

My unit didn't come with any instructions. I'm sure I've seen the "standard install" as you call it diagrams but I had no understanding of what they meant... seems like most of the diagrams look nearly the same but the instructions vary: "3. Disassemble the steering column shroud and place the antenna ring around the vehicle’s ignition switch as shown, and plug into the control module." I don't have an antenna ring I'll have to try wrapping the antenna wire once. I'm sure I've seen a diagram of a single loop of wire around the ignition, but I can't find it now. Thanks- hopefully that was the obvious thing I was missing!

You can extend the wires on the antenna plug ( Black and BLACK/ White ) with similar gauge wire. The "loop" is really just a wire that connects the Black and BLACK/ Whites wires. You should try to get about 5 wraps around the ignition cylinder. You can use ties wraps to hold the formed loop is shape and hot glue to secure it in place on the ignition cylinder. Here is an old loop I used with a 556UW on a 2013 RAV4 until a Data style bypass was available. Soldering is fun!