I have a 2000 Beetle. The internal spool for the ignition switch assembly (between the switch and lock cylinder) had the tab to the switch broken.
I replaced the switch and the internal spool.I replaced the lock cylinder also with one that had a keyfob (none matching to the car)since all we had was a valet key.
I tried the new lock cylinder and keyfob first but couldn't get the car to run more than (2) sec's due to the security system. So I put the old lock cylinder back in and the security system still won't let it run for more than (2) sec's.
I can usually disconnect the battery cables and touch them together for about 10-15 seconds to clear the security. I did this over and over between swaps. I also tried locking the doors with the back hatch open and shutting it. Nothing has worked.
I also pulled up instructions to program the new keyfob (about 3 different versions) and all of them failed to work.
At this point, the Beetle has the original lock cylinder and the valet key in it. What do I do ? Thanks in Advance !!!

 

Woo-Hoo !!! Short Story. Gave up on the Beetle. Went into the house to take a break from it for about an hour. Went back out to push it in the driveway 'til later. I had left the Valet key in the ignition while I was in the house. Turned the key to back the car out and noticed the Security Light wasn't on. The car started and runs !!!