For older cars moweewowee wrote a very good guide, but the one thing people are forgetting is that on many newer passenger vehicles, you must also defeat the "key transponder." This is the fat top part on some keys at the top. These keys cost about $60 for a new one.
On these cars, unless you have the correct key, the engine will cut out in about 30 sec - I think it cuts off the fuel pump power.
However, as it has been seen with Speedpass (the system at Exxon which lets you buy gasoline by swiping a little black fob by the reader), this is a crackable system, in that you can spoof the tag in the key if you really want to.
Hope this helps.
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