Sounds right. The relay will be released when the remote starter cuts out (e.g. when you step on the brake), by which time you will have put your key in the ignition anyway.

It doesn't matter; you're just looking at two segments of a big loop of wire that goes up the steering column, through the ignition switch and back down again. The Bulldog unit just splices into one wire (i.e. not interrupting it, just attaching to it) but interrupts the other one completely. When the box is off, it allows full VATS current through it so the resistance is determined by the ignition key alone, whenever the driver starts the car normally. When the box is on (e.g. during remote startup), it makes its own circuit completion, using whatever resistance value you dialed in, between the spliced white wire and the one leading back to the VATS box. I haven't tested to verify this but I assume it also interrupts the loop through the ignition switch in order to keep the circuit resistance value down where it'* supposed to be.

I think you've pretty much got a handle on it. The most important thing is to know which resistance value your car expects. I recommend just getting the VATS number off the VATS Interrogator in the locksmith department at Ace Hardware or similar, then looking it up in the table in the Bulldog manual, rather than trying to measure the resistance yourself; I went nuts trying to get a consistent reading, but the Ace guys got it in two seconds for me, no charge.

Can't tell which wire you're referring to here; need a little more context.

luckily, the new bulldog vats bypass autosenses the resistance value that needs to be used the first time you start your car after installing it. Although i did use a multimeter and found the value to be:3731 ohms where the listed value for that should be: 3740

As for the wires, using the documentation listed here:
http://www.bulldogsecurity.com/Model791.pdf

i believe i need to use 5 wires, those being
Blue - goes to whatever remote start is installed
orange - goes to a clean metal ground
red - 12v constant power - i assume i want this to go to one of the red 12v constants in the ignition harness, is this the best place to put it??
white - ignition positive in - This one i am not sure about, but my assumption is that this would be the pink wire in the ignition switch harness.
Yellow- bypass output - this goes to one of the white wires in the orange casing in the steering column.
green, purple & yellow/black are not used.

The white one is the one i am most interested in, the explanation from the document previously referenced is:
Connect the white wire from the 791 bypass or the large white wire on the remote starter connected to the pink ignition wire on the vehicle.
I assume this means that since i am starting by only installing the bypass unit to make sure i am comfortable with this process before proceeding with remote start that i want to connect this to the pink ignition wire in the ignition harness until i hook up my remote start, then switch it to whatever cable in my remote start connects to the pink ignition wire.

As for the yellow, the website pdf previously referenced has a different explanation than provided with the unit, this explanation says :
Connect the yellow wire from the 791 bypass unit to the white wire in the vats tube that shows voltage when the key is turned to the on or run position.
Will i need to test both? or can i just use either?

Finally, stupid newbie question
for the red wire it explains to connect it to a 12v constant fused at 5 amps. can you explain "fused at 5 amps" ?

to sum up my questions this time:
the red wire: what does "fused at 5 amps mean" and is one of the 2 12v wires inside the ignition harness the best to use?

Is my assumption on the pink wire correct?

Back to the 2 vats wires, does it make a difference on those? i hate the idea of cutting into both to test if they have voltage when i only need to open up one of them.

Thanks!

Randy

Found your questions in that other thread you've started on this topic; see my answers over there...