Ok I know this will win the dumb question of the week award but I'm not sure if I have this "Smart Key" function everyone keeps talking about. How do I tell ? Also the panic button on my key fob doesn't work and when I lock the car using the fob it just blinks the lights. Is something turned off somewhere for that too?

If you have SmartKey there will be a small, square, black button on the drivers doorhandle and on the hatch. What option pkg did yo get? The owners manual is good reading......

If you "have" a smart key, keep it in your pocket and try powering-up the car. If that works, you have a smart key.

If you lock the doors using the push button on the fob, the lights will blink, fore and aft. If you then grab the door handle and it seems as if the door is not locked (opens) then the smart key has recognized the power of your presence and the mere touch of your hand on the door handle has been imbued with magical powers. Repeat again, but leave the key at least 4 or more feet away from the vehicle. Now try to open the door. If it won't open ....you have a smart key.

Panic button? Can't help with that. I don't believe I've ever tried mine.

ZinFan

If I recall my owner's manual reading correctly, smart keys have a silver Toyota logo on them, the "not so smart" keys have a black logo (same color as the key).

My 2005 Prius (Opt. 6) has a SmartKey with the silver Toyota logo. I can't comment on the "not so smart" key.

Happy New Year!!