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Right, well it looks like the immobiliser is still working but is working fine. as the RED led, is working as it should and doing all the stuff it would normally if the immobiliser was dis arming etc.
The immobiliser is in the ecu, it goes through the uch, to the decoder ring and back. what you describe doesnt sound like the immobiliser light at all.
as for taking the dash out to chase the wiring. good luck. the wiring on these cars is a pain in the arse, trust me im doing one as we speak.
99% of the time, 100% on 16v engines.
But the old OHC engines from vauxhall, the 1.1 punto, the kent x-flow engine can usually be timed up and go again without taking the head off.
Any way, take the cams out, and run a compression test. see what the figures are, if they are all 120psi+...
Well ive FINALLY got hold of Paul, as the ecu didnt arrive, he hasnt sent it yet :( He said he will try to get it posted today to get it to me tomorrow...