Thanks for the help everyone. Il look for a new transponder on the Internet.i believe the keys were damaged by tossing them to someone who cant catch worth a crap. ( The throw was perfect).

the transponder is sh!t for sure. The glass that the transponder is encased in is shattered.

the alarm is going off( I think ) ,but just the little red light on the dash blinks. Siren doesn't work. Never has. I think the previous owner disabled it.

I went to the local junkyard and got a another key and antenna ring and was trying to use both of them to send signal to allow the engine to start and my original key to turn the lock cylinder.
....It did the same thing. I guess the antenna ring is vin specific also.

I get the message: start prevented, try again.

I know the transponder is no good because we took it to a local locksmith and had it tested. they said that it was not sending out a signal. I live in Corpus Christi Texas and there's no Volvo dealership in this town, the closest one is in San Antonio. I don't even have the money to tow it next door

Have a 2002 Volvo S60 T5 with a worthless transponder in the only key that came with the car when we bought it used. I need to know how to bypass the immobilizer or the whole factory alarm. Please help it's our only mode of transportation and we have to move it or it will be towed.