alarm stopped working with bad side effec

My alarm just stopped working.  Everything was working just fine for over a week and all of a sudden it starts acting up.  Basically, when you arm and disarm the car the siren does not chirp anymore.  Also the light flashes are backswords. It flashes twice for arm and once for disarm.  The car will not start most of the time. It is like the started kill is stuck on.  The lights are all dim when the ignition is turned on and the car will not start at all.  After continually trying sometimes the light get brighter and then go back dim.  If you go to arm or disarm the car it may or may not do anything.  It seems when the alarms is armed (it might not actually be armed) none of the sensors work.  Another words the alarm is impossible to trigger.  After messing around with it and usually after disconnecting and reconnecting the battery it will all of a sudden come to life and I will be able to start the car.  The alarm does not work though and has all of the same problems as I have already said.  When the car is disarmed the led just stays on, not flashing but solid red light.  When the car is armed it will flash.  The led should turn off when the alarm is not armed.

The only thing I can see as being wrong is the valet switch got stepped on and the switch fell off.  So not the valet wire just ends with no switch. 

Any ideas?  I put the alarm pretty far up in the dash with zap strapps, could i have busted it in zapstrapping it too tight?

I think its crazy but simply reconnecting the valet switch solved all the problems. How and why would this switch mess everything up so badly?  Seems pretty flacky to me knowing that all someone would have to do is rip out the valet switch to mess the whole alarm system up so badly.