95 lumina ls randomly not starting

These are the facts in short form:

1 - 95 Lumina LS with 3.1V6 with key that has the pellet made on the key. (passkey?)
2 - Security light blinked on 2 or 3 times about a year ago and car wouldn't start, but haven't had a problem again till now.
3 - Over the past few days it is not starting way more often than it is starting.
4 - What I have noticed when it's not starting is this: Security light is staying on steady, and not going away after a few seconds like it normally does. I also don't get 12v at the starter solenoid when the key is turned like I should when the security light stays on.

My wife has misplaced the spare key so I can't try that option, so my question is, what is most likely causing this issue and what are my options to remedy it cheaply?

Here's some info on VATS key system, easier to let you read it than re-type it all.

If you think the contacts are bad, you can pull the wires from them, and solder a resistor of the correct value in between them. That will satisfy the VATS system, but obviously you lose that passive theft deterrent.

http://www.thirdgen.org/vats_passkey_system

Not many people are looking to steal '95 Luminas anyway, I wouldn't sweat it, that's how I'll deal with it when mine pulls that stuff....

Here's some really pertinent info from that page

t is common for the leaf contacts and/or the resistor pellet on the key bow to become contaminated to the point where the VATS decoder module cannot correctly sense the pellet resistance, or cannot sense any resistance at all. This would usually cause a no crank/no start situation. Cleaning the key pellet and leaf contacts can frequently restore system operation. Because of the risk of contamination and other reasons, NO liquid lubricants should ever be used on the ignition lock cylinder. The generally accepted lubricant for ANY lock cylinder, whether a plate or pin type mechanism, is powdered graphite ONLY. This especially applies to VATS ignition lock cylinders. It is also common for the two wires from the ignition lock cylinder contacts to break due to the necessary flexing which occurs every time the ignition lock is moved. This can usually be diagnosed by measuring key pellet resistance at the VATS module or at the connector at the base of the steering column.
There is a small two-wire connector in the upper bowl of the steering column which can become damaged or disconnected as well, since clearance between moving parts in the upper column bowl are minimal.
The connector at the base of the steering column can fail if subjected to stress, moisture, or movement if the lower bolster trim is not in place.

This is what I did on a 95 cutlass couple years and still going strong.
http://vats.likeabigdog.com/

I agree......the usual problem is, one of the white wires at the lock cylinder breaks, due to flexing over time.....this can be easily verified......if you follow the orange sheathed wires(2 white wires) coming down the column, they will exit from the rest of the wires and go to a two wire, black connector.....

You read the resistance across the key contacts......then you install the key, now you disconnect the black connector and attach your ohm meter to the two contacts in the harness that goes up the column.......the resistance should be the same as the key resistance.......if it reads "OL" or infinity, one of the wires is broken......if the reading is ok, now rotate the key to the crank position(don't worry, the car won't start, because the harness is disconnected) and then back to off several times......the resistance should be constant....if you get a blip while rotating the key, wire could be broken INSIDE the insulation, creating an intermittent contact.....

Either you replace the lock cylinder(you will need a new key with the SAME resistance value....it will be cut to the blank that comes with the new lock cylinder) OR, as has been suggested, and is much cheaper, you cut the two wire harness and solder in a resistor with the same resistance value as the key.......

Thanks for the fast and detailed replies. Looks like it's going to be the weekend before I get time to work on it. If it comes down to it not reading the key or the wire is broken, I'm just going to install the resistor(s) because I'm not to worried about it being stolen. I just need it to run for another year till I can get the wife something newer.

OK, I have a technical question about the ohm readings in the list below. I didn't have an ohm meter with the 20k scale. Mine just has one ohm setting. When I read across the key my meter came up with 679 ohms (no decimal point at the beginning). When I went to radio shack today they were kind enough to use one of their meters that had the 20k scale and the reading came up .679 ohms. According to the table below I am thinking that I have the 3rd one in the list which is .681. That being said, which do I need, a 681 ohm resistor(s) or a .681 ohm resistor(s)?

This chart is for any GM product, Buick, Cadillac, Oldsombile, Chevrolet, and Pontiac that has a VATS key (single or double-sided.)

VATS # (K)OHMS (Set your meter to the 20k ohm setting)

1———— 0.402
2———— 0.523
3———— 0.681
4————-0.887
5————-1.130
6————-1.470
7————-1.870
8————-2.370
9————-3.010
10————3.740
11————4.750
12————6.040
13————7.500
14————9.530
15————11.801

Disregard above post. I did find out that it was a 680 ohm resistor like my DMM said it was. I assume they say to use the 20k ohm scale just in case you have one of the higher reading pellets on your key so you will get a full reading. I installed the resistor today and the car fired right up. Nice to be able to fix an issue like that for a $2.00 pack of resistors.