4 runner w/ key placed onto ign to bypass

2004 toyota 4 runner, Clifford intelliguard8000, intellistart4, smartwindows4:

          After installing alarm w/ intellistart4, remote start wasn't working at first till I found about the transponder key deal.  I've installed a good amount of alarms into customers cars (x car audio installer) but haven't done an alarm install for a while (kinda rusty at it now).  I noticed on the DEI 555 bypass imobilizer units which basically takes the signal coming from the master and regenerates that signal on the wire loop around the ignition (correct?).  I toyed around with the placement of the master key and what I noticed was that if you placed the master key in a spot where the ignition will still be able to pick up this coded signal from the key, that the car assumes the key is placed inside the ignition and would allow the intellistart4 to remotely start up the engine.  So, I was wondering if I still would need the bypass imobilizer unit and if placing the master key next to ignition would be a good idea.  I know that it would be pretty idiotic to have the key placed right next to the ignition but what if I chopped off the key end so it just has the transponder portion left.  Any thoughts about doing this.

<<Clifford intelliguard8000, intellistart4, smartwindows4>>
Sounds like U have good components now, so why CHEAP it out??

U can wrap wire around key and go thru relay then wrap wire around ignition switch for basically the same thing......But it's not the best way.
The Idea of Alarm Installations is S T E A L T H..............

So do it right

 I also read that if by chance there are two keys being read at the same time the key codes may get cleared, which I knew that whatever crafty device I made, if it was built incorrectly I would be screwed.  Basically, you help me confirm my theory of how the imobilizer bypass unit works.  I definitely do not want to be stupid and get creative on other ways to bypass it.  Can you give me a recommendation on a bypass unit I should go with? 

       Thanks,   MO

Installing any bypass kit which requires a key is asking for trouble.  Go to bypasskit.com and get a module that doesn't require a key.