I have an '07 liberty and am having the same problem as you. I attempted to look at your video but couldn't get it to load.
I get the chime, but the indicator will illuminate, but never flash in step 3. Is that what happens to you?
Ray
Exactly.. I'll try convert the video from divx to wmv (windows media video), hopefully you can see my problem.
As for the correct key, I should have the right one. All the numbers on the back of the FOB match up, though I couldn't get to the step of programming it.