Can't start car - Anti-theft problem? on 1996 Lincoln Town Car

When turning the key, dash lights come on normally, but once turned all the way to start there is a click and all power shuts off. Subsequent attempts produce no lights or clicking noise. When the key is removed from the ignition, the anti-theft light blinks. I have been able to get the power back by disconnecting and reconnecting the battery, but the power only works until I try to start the engine, then the same thing happens. I have access to two keys and the code for the keyless entry (no remote). I tried locking the doors and opening with the code, but still no luck. Both the battery and alternator have been tested and are good. Is there a way to reset or disable the anti-theft system? This is for the factory installed anti-theft. There is no aftermarket system present.

by in San Francisco, CA on August 24, 2009
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1 answer
ANSWER by , August 26, 2009
The chip on your key might be bad, call the lincoln/ford parts dept and asked them whats the usual process to take when the ignition dosn't read the key chip. The car thinks someone is trying to steal the car. I just noticed your in San Francisco call Ko at P and K automotive 415-587-8410 maybe he can help you over the phone, tell him Repairpal sent you, Good luck