98 Jetta GLS Alarm/Lock problems--help!

If I unlock the driver's side door w/the "real" key, the alarm goes off. I have to use the remote key to turn off the alarm.
If I lock the driver's side door w/the "real" key, only that door will lock (the remaining doors stay unlocked).
I can only lock/unlock the car w/the remote key without setting off the alarm.
Neither the "real" key nor the remote key will arm alarm system (as far as I can tell--the little red light doesn't flash).
What the heck is going on here?
Also, the button for the driver's side power window has stopped working, though it will lower the passenger side window, but won't close it.
Is this the door sensor going out? Or something more sinister and complicated?

Sounds like you have a bad driver door latch microswitch. It requires replacement of the door latch assembly.

Any idea how much this might set me back? Thanks!