You are correct the earlier generation PATS had a red master key this is required to program additional keys. The PATS LED will not be in the dashboard area (It's a RED LED usually located by the clock/Centre dash)

PATS= Passive Anti Theft System

The Airbag and ABS lights should extinguish this indicates they have done a self diag and everything is ok.

Battery and oil should extinguish with engine running, and handbrake obviously when handbrake is released (Unless low brake fluid)

I am almost certain this is the problem from what you have said and doing the free easy thing to looking at the state of the LED will confirm this!

Martin