SKS and Always Flashing Immobilizer Key Light Problem

I bought a new to me 2005. The car came with one fob with the silver logo. The smart key functionality does not work on the car. Lock and unlock works with the fob and I can start and drive with the fob inserted in the slot. Oddly when I push the black button on the outside of the door the red light flashes on the key fob. I have pressed the button under the steering wheel labeled key and that does not seem to change anything. Pressing the button on the door handle causes a long beep to sound.

In addition the light on the dash that is the car with the black key in the middle constantly flashes. It never turns off while driving. I believe this is the same light that acts as the theft deterrent light. I would think that the two are somehow related.

Does anyone know how to get the Smart Key functionality working and how to get the light to stop flashing?

 

No. It has a clean title.

 

Noted this morning that the black button did work but proximity did not to start the car. Perhaps I was doing something wrong when trying before. I also tried unlocking the door and then moving my key far away and trying to start the car. The car did not start and the actual key light flashed. It doesn't appear that there is a hidden key in the car anywhere.

 

Thanks for the replies. The fob battery is new. The 12v appears to be ok too. Testing this morning after sitting overnight showed 12.1v on the MFD. I looked at the 12v but didnt see a manufacture date on it.

The dash light flashes in some type of pattern. Havent watched it enough to take note of the pattern. Also noticed that there is a light near the speed that say Ready in a box. That seems odd too.

I guess Ill try MiniVCI. Pretty sure Ive got an old XP Lenovo somewhere.

Today a stripped all the carpets and seats out and gave it a good scrub. Pressure washed the carpets and they look 1000 times better. Prior owner had some nasty stuff caked in the carpet, especially in the trunk area. Car has 212000 and a recently rebuilt hybrid battery.

 

Is there any VCI thats better than another? All the necessary software is included with the tool or is there another program that I should download?

 

reviewig the battery I saw that it was purchased in 2015 from Napa. Took the battery to my local Napa and dropped it off with a charge of 12.68. They kept it over night and old tested it in the morning. The battery passed testing and was determined to be in good condition. It appears that it is something is draining my battery down to 12.1 overnight.
How in the world would I figure that out?

 

After reinstalling the battery I tested with a meter at the actual battery posts. I was getting a reading of 12.3 and the MFD is showing 12.1 so there is a .2v discrepancy. I might take to another Napa to see if they will run test on it but I believe that the battery is good. Can anyone else think of what would cause the Smart Key not to be able to start the car but unlock the doors and what would keep the immobilizer light on. I would imagine that they are related to each other and aren't related to the 12v battery condition.

 

Confirmed that SKS is detecting the key by leaving the fob in the car and trying to lock the car from the outside. Car emitted a long beep and would not lock the doors.

 

I got Techstream all set up and running on Windows 10 x64. There were no codes thrown related to the immobilizer. There was one related to the capacitor, C1377, which would not be related. I tried to reprogram the key to the immobilizer system but it would not work. What is the "ON" setting in a Prius? I should have my new key tomorrow so we'll see if can get it programmed and make any changes. Anyone have any ideas on checks or test I could make with TechStream to figure this out?