Thanks for the help everybody
I figured out where the sensor actually connects today (I took apart the passenger door finally...not sure why I couldn't do it with the passenger door though). Connected the sensor to the lock cylinder where it's supposed to be, plugged the battery back in and when the alarm went off, put the key int he drivers door and turned it and boom. All set!
Really pumped right now! xD Now to figure out why the alarm went off in the first place. So sometimes on the VIC, it shows the hood as open, which I'm thinking could be because of the door jam switch under the hood (thinking it might be bad). If I open the hood and close it hard the light turns off...Could that be the reason the alarm went off? Also, on that VIC, what is the thin rectangular red light above the one that indicates the hood being open? That light is on a lot...looks like where the radiator would be on the actual car. Appreciate any info somebody could give!