I would still change the battery. The little LED doesn't require near as much juice as the transmitter. You could get the light and still not be able to open the car.
I would try to do the things mentioned in one motion, not wait any specified time.
It is possible that the key is bad, or that something's wrong with either the alarm or the door locks (either mechanical or electric). Have you tried sitting in the car and locking it using the dash button? Does the alarm activate? Do you get the blinking LED on the dash blinking for 10 sec and ten once every 2 sec.? If it blinks for 10 sec and then blinks twice every 2 sec., this indicates a fault in the alarm. The Alarm unit (located under the seat) has a separate API Fuse in it and there is also a fuse in the fusebox on the driver side footwell (#C3 - 15amp).
If swapping the battery checking alarm function LED and fuses don't do it, you'll have to have a dealer look at it with a PST2 or PIWIS diagnostic tool
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