The lock cylinder contacts are not reading the resistor in your key, contacts are worn or dirty.
Two fixes: replace the lock cylinder or by-pass the lock cylinder contacts and the VATS.
If by-passing the security system, go to Radio Schack and have them read the resistance of the key "puck" resistor, and buy the 4 pack of resistors, about $1.
Crawl under the stearing column, and find two small white wires that are running together from up inside the column to the VATS module someplace far away inside the dashboard. There should be a connector near the base of the column, cut the wires going up to the lock cylinder, and solder in the resistor to the two wires going to the VATS module. Cover with tape or tubing and your are done.
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