I answered my own question. I went to a locksmith shop to see what the options were. They wanted $60 to recreate the chip key and said I needed to bring in both original keys to do it, or $6.50 for a standard key. I took the cheaper option. It works fine. I set the alarm with the key fob, got the horn chirp, opened the door with the new key (but did not wait more than 5 seconds) and drove away without setting off the alarm. So, if you have a 2005 I guess you can save your money on the chip key. I will try it again after a wait period, but it sounds like the PATS alarm is non-functional.

Anyone tried this trick on o6 model yet?

Here is an idea for getting compensation for the non-operational Passive Anti-Theft System (PATS) on 2005 FEH ... simply have them install the blinking red diode on the dashboard. I did this on my 1988 4-Runner for only a few dollars and never had a break-in (where many other vehicles were broken into around me in the San Diego apartment complex). This in conjunction with the FEH working Perimeter Alarm should scare away the inexperienced thieves, but no device will stop the professional thief.

Individuals may successfully demand this from Ford Dealers (especially for those dealers who mistakenly told FEH buyer that the 2005 FEH PATS worked) since it is an inexpensive modification with existing Ford parts. Where-as it is not likely that Ford will provide a "recall" to fix the PATS problem on all 2005 FEHs, which is rumored to involve replacement of DC/AC inverter and software upgrade.

Thieves may not attempt stealing a FEH if they think all Escapes have a PATS ... that is unless the inoperative PATS "dirty little secret" on FEH 2005 models gets out in the media. Since the 2005 looks like the 2006 model that does have a working PATS, it should be an effective bluff.

Another effective theft deterrent is to get a Vehicle Identification Window Etching.
See vinguard.org, vinetcher.com, vinshield.com, etc…

These kits only cost about $20-$30, take about 15 minutes to install, and have been very effective as theft deterrent as well as having ~85% recovery rate (as opposed to ~60% ave). This deterrent works because thieves cannot modify the VIN to sell vehicle without replacing all the windows.

Great. Just like the fake video cameras that low-end stores used to install. Do you have some Ford parts numbers and wiring diagrams? Where is the light that is supposed to blink positioned? I suspect my dealer could not do the hook up without someone to hold his hand. Of course, you cannot know anything about what did NOT happen, maybe the bad guys just did not like the looks of your 4-runner.

I was suggesting using the same diode light that is installed in other Escapes and the wiring for a light is about as simple as you can get.

Auto thieves know these lights indicate alarms and vehicle immobilizer systems. If they are familiar with the Ford PATS system and have method to bypass it, then they would break in anyway.

DKNAPP - if you don't like the suggestion, then don't try it. Just thought it may be a helpful suggestion to others concerned about security, but are doubtful that Ford will correct the problem for all 2005 FEHs.

By-the-by: Probably right about the 4-Runner, it was more like a pick-up truck than SUV with the removable top ... but I had some fun with it on many campout trips.

I do like the suggestion. I am willing to try anything, but having never seen another Escape or the wiring diagram, I was wondering exactly how to hook it up, exactly what parts to use, where does the light go, etc. I doubt that my dealer will hook up anything that is not covered by a TSB or some other Ford sanctioned scheme. He did not want to provide a trailer hitch either, even though the regular Escape hitch will fit. The Hybrid was just not listed in his book.

Under the circumstances it might be effective -- I hope they don't read these forums and learn that all 2005 Escape Hybrids with blinking lights have a bogus or inop SecuriLock system. This stuff shows up on Google for everyone to see. I suspect that is why we no longer see those fake cameras. Dumb crooks get caught early, natural selection breeds smarter crooks and no one is safe as you pointed out. But it might work for a while. Even a dumb crook can ruin your day.

I am going to press Ford to make good on their advertising and see what happens.