@MyExplorer03v8Lim
The ignition switch is pretty bullet-proof, and actually simpler than earlier design. The "cue" on whether the Chip Key is being rejected lies in the red blinker light on the front of the dashboard, by the windshield. At rest, the red light should be blinking on every two seconds. If it's not, something's wrong in the anti-theft system. If it is, turning the key to ON position, lighting all the icons on the instrument panel, the red light should glow constantly, if you wait under that condition about 5 seconds, it will extinguish, indicating the PATS system has passed the key, and it's waiting for you to crank the engine. If turning the key to ON causes the light to flash quickly, about 4 or 5 times per second, this indicates the key has failed (or some component in the PATS system is not functioning properly, though I think if that happens, the lamp may not be reliable as the tip-off).
If you feel it may help, I'm scanning the ignition switch schematic for my '04, which I think must be mostly similar if not identical to your year. Each "flagged" arrow indicates feed to a powered device. For example "R" at lower left feeds a fuse which then feeds Rear Wiper Motor and Inst. Cluster, and a second fuse which feeds the Windshield Wiper Motor. Note the marked switch positions: "R" is fed power in Accessory and Run key positions. If you feel it may help you, please say the word, and I will scan and post ALL the feed destinations by tonight. Good luck! imp