Ok I spent 2 very careful hours getting the transponder out of my original Subaru key. Thanks to your help, I was able to forgo useless practice and try something different. I decided that I would sacrifice the key body entirely to reduce the chance that the transponder will be damaged. After all, the only thing that really is important and costly to replace is the transponder, once you have the electronics buttons safely removed.
Using a medium sized pair of sharp wire clippers, I just snapped a square around the transponder by cutting through the original housing. I think I have Subaru plastic housing chips in all four corners of my house now. Next, I cut into the two corners on the narrow wall side and the wall came down with minimum leverage from a very small flat-head screwdriver. I then used the screwdriver and slightly pried from the bottom to get the transponder out successfully. This was a very delicate process. The whole time I kept the transponder laying on the work towel so that it would not go "flying" like the plastic chips.
The transponder seems to be very delicate and fills the entire cavity of the Subaru housing. It was placed in the slot by Subaru in a raw state it seems. So delicate, I was afraid to even try to pick it up after it was pried out of the tray and dropped onto my work cloth. I took another small cloth and used that, instead of my fingers, for fear that moisture would ruin the small device. Once you place it into the new housing, it fits very snugly, but not near as tight as Subaru had it. However, there should be no chance that it will shake around or be damaged once the housing is assembled.
So far, so good. Hopefully I have not shortened the life of the transponder device and my cheaply purchased flip key will work for a few years to come. One word of advice on assembly of the key once you have the transponder inserted and complete your assembly. Turn the spring one quarter turns as you insert it, then attach the other half and make a full rotation with the single plate as the key is in the open position. I did this without the blank inserted. When you screw the housing together, there should be a 1 and 1/4 rotation in the spring which will give you a solid amount of force on opening but not so much that the spring will be damaged or refuse to stay in the closed position. Now is a good time to screw in your newly cut key blank. Also take the time and select the right size screwdriver to secure the black screws, they strip very easily. I damaged one getting it tightened in, so I do not look forward to getting that out whenever I have to change my battery. LOL!
All together, the key is solid and works well. It reminds me of my wifes VW flip-key. I will post again if I have any further comments or notes that may be beneficial to the community. Best wishes to Gachrid and Chris. I hope this helps. I appreciate your input in the project.
