The Key1 wire goes to one of the Canbus wires.. I had to extend that wire and run it over to my steering column on my WJ Cherokee.
It had the infinity system, but it was not canbus controlled back in 02. My 07 WK is canbus controlled. I believe all of them are.
On my WJ I only had one of the Key wires connected, I did not need 2. I think this extra wire is for non Canbus (resistive) systems.
My 07 WK Cherokee has a canbus controlled amplifier, and had no speaker wires going to the amp. It has a Boston Acoustics system.
You should be able to use the canbus wire that controls the amp, which is already part of your factory radio harness to connect to the Canbus system.
You shouldn't need to run a cable to your steering column on the 05-10.
Since Canbus transmits everything on the single wire any canbus wire you can locate should work.
The Ground wire is just a ground, they specify it should be a ground that your steering controls share, since some vehicles use a resistance
based button system. I just spliced my ground to the radio ground.
Here is a pinout for the factory harness.
http://www.wkjeeps.com/wk_audio_pinouts.htm
Another thing is you didn't specify if your using a PAC or similar adapter. If you are that will affect things
a little.
BTW: I installed a Eonon 2110 Android in my WK, very similar to the pumpkin.
http://www.jeepforum.com/forum/f22/johnny-5-build-3645210/#post34421601