Ahh sweet success. Guess it may be my day after all. After a little internet research I found you can add resistors in series to get the level you need.
http://www.doctronics.co.uk/resistor...eries_parallel
I connected a 1/2 watt 1500 ohm (or 1.5K) and a 1/2 watt 330 ohm resistor w/ a small barrel connector to get above the 1815 ohm level I needed. You can view resistors at radioshack.com to see what values they have and to know what you need before heading off to Radio Shack.
I cut the yellow wire and attached a fully insulated male connector to the ignition side and a fully insulated female connector to the dash end of the yellow wire. I connected the resistors together as above. Then on one end I placed a fully insulated male connector and attached this to the female connector on the dash side of the yellow wire. I was not succuessful in removing insulation from the black wire w/o breaking the wire but it worked out well for the wiring in the end. I connected a fully insulated female connector to the ignition end of the black wire. Then I connected a crimp pin connector to the dash end of the black wire and the other end of the resistor. Both pins slide in nicely into the female connector. Car started fine and the theft light did not come on.
For curiosity I called the dealer. The ignition lock cylinder was $187, recoding for my key was $49 and labor was $131 for a total estimate of $388. I spent $14.64 at Radio Shack. It only cost me this much because I needed the connectors. The resistors were $0.99 for a pack of 5. I borrwed the multimeter to measuree resistance which saved my some $$ but this would have been a good reason to buy one.
I thought about trying the cleaning method but chose to do the bypass instead since I already had it exposed and the cleaning method was not as guaranteed in my mind. Also, a can of electrical cleaner at Radio Shack was $11.
I was worried my radio was not going to work since I disconnected it before I read not to. Figured the anti theft device in the radio would disable the radio. Luckily it did not and the radio worked find after reconnection. Even held the stations programmed in. Ironic that while fixing the faulty anti theft system in the ignition that the anti theft measure I was expecting to work in the radio didn't work either.
For 1997 Malibu owners, get to the wires by removing the trim panel around the radio and the radio. (Disconnect the radio at your own risk.) You can see the ignition cylinder to the left. The wires for the passlock system are together inside some black sticky tape. There is enough wire to pull them into the space where the radio was to work.
Thanks ponchonutty for the guideance above. I am not mechanically inclined and if I can do this anyone who can read, differentiate color and cut a wire can do it. It took me around 2 hours total w/ 2 Radio Shack trips and several trips back to this web page. Now that I know what I am doing I think I could do it again in about 30 minutes.