There are a few items that are needed for this switchkey fob to work:

1. Ford Transponder Key http://www.amazon.com/gp/product/B00...?ie=UTF8&psc=1 ($12.00)
2. Ford Keyless Entry FOB http://www.amazon.com/gp/product/B00...?ie=UTF8&psc=1 ($6.00)

-Item 1 is an aftermarket Ford transponder key. This specific key allows easy removal of the "transponder". The transponder is located inside a little door beside the key blade. Remove it using a pin, or the tip of a knife blade. The transponder slips out with a casing. Remove the casing and you now have the transponder that can be glued with crazy glue into the new key fob.
-I am not sure if this matters, but I made sure to glue the transponder into the new key fob in the same direction it was sitting in the transponder key.

-Do not buy a Walmart transponder key. They use a coil connected to a battery (inside the key). It is useless for this application. I had Walmart cut the key on the new key fob, they did a good job. But I had to get the Ford Dealership to sinc the transponder ($50.00).
-Use the rubber keypad from the Original Ford Factory Key Fob. It works better than the one that comes with the new key fob.

Taking apart this key fob is a little bit tricky. before you close it up you need to wind up the spring. Place the top half of the key fob so that it almost touches the bottom with the spring in the correct location. Then rotate the top half counter clockwise two rotations (keep the spring in the center). Then close the two halves and tighten up the screws; and you are done.

Note: Do not try to remove the transponder from a factory key. The transponder is made from what looks like rare earth mineral, and is very brittle. Removing it from a factory key will crack the transponder, rendering it useless. Trust me, getting the aftermarket transponder key is well worth the investment.