'96 850 Keyless Entry Problem

Hey Guys,

I have a 96 Volvo 850 with around 120,000 miles on it. About a month ago the keyless entry remote (FOB) started slowly fading out. It would work sometimes and other times it would not work. Last week I tried changing out the battery and it still would not work, so I wrote the old remote off and ordered a new one on ebay. I got it yesterday and read everyones instructions on here about how to reprogram it: get in the car, lock all the doors and turn the key 5 times...push a button...and viola, but instead of working......nothing! I noticed this morning that the red LED light was no longer blinking so I took it to the dealership for help and they were completely worthless.

So here is my question? Is my sensor on the car shot, or am I just doing the programing wrong. Any thoughts would be great!!!!

Thanks

5 times ????

http://img507.imageshack.us/img507/9601/xfbxbud0.jpg