Wiring? Alarm engages while driving

1998 VW 2.0 Litre Automatic
Ok the car now starts - the starter has been wired directly to the battery and a push button now starts the car (Before engine wouldn't turn, radio and lights came on, and alarm went off after 15 seconds).

Now I start the car and after say five seconds the alarm engages -beeps (siren doesn't go off) - all the locks lock, and I can't use the passenger window after this - but the drivers side window works. I have to be careful about the keys b/c if I warm up the car the car will lock up itself with the keys inside :(.
The alarm will engage again sometimes many times while driving - beeping while I'm in deep thought and scaring the crap out of me.
If I want to let someone in the car after it's started, I have to turn off the car (the alarm will beep again) and press the unlock button on the key fob. If I don't and just open the door with the car on the alarm will go off (the siren).

What the heck is happening???? I'm thinking the car not starting in the first place is related to the darn alarm! Advice? Other forums I should post to? The last thing I want to do is pay VW a fortune to fix it.

1998 VW 2.0 Litre Automatic
the starter has been wired directly to the battery and a push button now starts the car

there ya go

you need a new ignition switch...