96 accord manual won't go into gear?!

Hello.

1996 Honda Accord EX 2.2L manual 5 speed.

My car just got broken into. The only thing of value was the radio, which was completely ripped out of the console, broke the housing around it, etc. (where I will find that part is another question for another day).

I had an aftermarket alarm installed years ago. It is an ancient Viper 500 plus with the starter-kill feature. I don't beleive I have the VRS (vehicle recovery system) installed. I've been told that requires two "valet"-type switches, I only have one.

My car drove absolutely perfect the day before the break-in. Now it won't go into gear while the ignition is on. I can put the car into gear and then try to start the ignition but it sounds like its trying to start but can't. It sounds like the power is draining until it cuts off. The battery has since died. I had the insurance company tow it to my local honda dealership. The insurance will not pay for anything unless it can be proven that this problem is due to the theft (go figure).

The dealership does not believe it is an electrical, but a mechanical problem. They have checked the clutch pressure and hydralic system and say they are working fine. But they still think it is a clutch issue and want to remove the transmission to check the pressure plates. This will, of course, cost mucho bucks ($650 labor alone) which I am not prepared to do...

I've spoken with a car alarm expert and he doesn't think the alarm would be causing this problem.

Do you guys have any ideas / suggestions / advice? I am no automotive expert, especially imports, but it seems to me that this would be an electrical problem given that: the car worked up until the break-in, when started in gear the ignition stalls the car and the battery has since died...

What do you think? Any advice would be most appreciated...

Thanks in advance,

Bryan

  brapt