Pulled off the ignition cover a moment ago an inspected. Everything looks pretty good and tidy in there. Blew out a bit of dust though.

Checked out the rear side of the ignition barrel and i think there were 5 big wires soldered onto it, connections looked good.

Noticed that there is a tiny little metal switch right where the key goes into the slot. This must be the key sensor, as soon as the key touches it, the flashing red key goes out on the cluster. You can hear it clicking if you do it gently.

Shook the key around a little bit and went for a drive while messing with it and the position of the steering column and no red flashing keys, So the key sensor is alright.

__________________
[SIGPIC][/SIGPIC]
Should have bought an STI