The easiest way to bypass the Passlock 2 system is to place a resistor between the passlock sensing wire and the ground reference wire. To find these wires, look for three wires that at some point are wrapped together, coming from the ignition barrel. Usually, they are orange/black, red/white, and black. They can also be yellow, red/white, and black.
Here's how you do it:
Cut the orange/black wire or the yellow wire, depending on what you have. Strip both ends of the wire, so you can reconnect them if needed. Next you must strip some of the insulation away from the black wire, exposing the copper inside. Now grab a reliable multimeter and set it to read Ohms. stick one probe into the exposed copper in the black wire, being careful not to touch it during the resistance test you are about to do.
Hold the other probe to the ignition side of the wire you cut in the earlier step. While doing this, crank the starter and note the resistance reading you get on the multimeter.
Next, arrange one or more resistors in a chain so that they add up to the value measured while cranking the starter. You can be within about 5% of the value, and it will be accepted by the passlock system as genuine.
Once you have assembled the resistors so they represent the correct value, tightly wrap one end of the resistor through and around the exposed copper of the black wire. You may solder this connection if you desire. Protect this wire by taping over the exposed metal.
Now you take the cut wire that leads toward the Passlock module (NOT toward the ignition barrel) and connect the other end of the resistor to this wire, being sure to tape it to protect against shorting. Once that is done, be sure to tape the exposed cut wire that leads to the ignition barrel.
If you have performed these steps correctly, your Passlock system will no longer give you any problems!