[boxfix]

Originally Posted by emdls

There is a cheap solution: Take the transponder pill out of the key, and tape it to the inside of the ignition trim piece with electrical tape, and just make a copies of the key blade for $30 bucks via keysinthepost.com or a competitor (it's simple: you just upload them a pic of your current key blade and they mail you a new blade). That's all!

Full description of the mod/hack at:
Ultra Cheap Second/Backup (Valet) Key Hack/Mod - Rennlist Discussion Forums

I have done this on my 2003 986 and it works like a charm.....had 2 spare keys cut.