After calling several dealers that sell OEM parts at discounted prices, it turned out none of them could sell the re-key kit online even though they list it. VAG requires dealers to sell the kit in-person and with proof of ownership. All said sorry go to your local dealer. My local dealer offers 10% discount from MSRP, so the kit would be ~$650 vs $730 MSRP.
Spent a few hours exploring the world of Immobilizer III mechanisms, programming and defeats. The RossTech website makes it sound that re-programming is not possible since dealers cannot give the 7-digit SKC since 2005, but there are tools available to get the base 4-digit PIN that can be used to do anything. Apparently we can even change the odometer which is shocking.
Here is what I am now coming around to which is MUCH cheaper, simply reprogram both:
a) the FOB keyless entry and
b) the immobilizer
to lock out the stolen key.
At that point the stolen key could be used to physically unlock from the driver side door, but the key would be blocked by the immobilizer from running the car and the keyless entry if tried would start the alarm.
Then to fully secure the car I'll swap the driver side door cylinder with a new cylinder and key from the junk yard. I could now use my current keys for keyless entry and ignition, and use the new junk yard key for physical door unlocking if needed for some reason. While the stolen key would be fully locked out at that point (my truck cylinder hasn't worked in 5 years so that path is already blocked).
For pin access the VAG K+CAN Commander looks to do the trick
https://sites.google.com/site/imnuts/
Ross Tech instructions to reprogram the immobilizer (once you have the PIN)
http://wiki.ross-tech.com/wiki/index...hing_(Cluster)
Another advantage of this is apparently we are limited to 8 keys per the lifetime of the Immobilizer/Cluster panel, by reprogramming with my existing 2 remaining keys I can disable the old key while not using any of the remaining slots.

Originally Posted by
shurur9
Check out ravelco.
Check out vag-key login tool
Thanks, ravelco looks interesting but won't blocking at the immobilizer level do the same thing? For getting the pin out the VAG K+CAN Commander looked by far the cheapest.
Overall this has been a pain, but I've learned a lot and think I have a solution for less than $100 now. This learning has also made me more convinced that I am keeping my B6 forever. Apparently starting at B7 (or B8) the even Ross Tech can't program the immobilizer and you are forced to go to the dealer for everything key related, while for B6s we can do anything.
If there are any flaws to this plan, please let me know.
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