Yeah I'm sure there MIGHT be a way to bypass the system but what BornAgain's saying is if it was well-known or easy to do the PATS being installed on all Foci to protect them would basically be a moot point.
I have heard on very Rare occasions of advanced car theifs hotwiring a Focus without the PATS, but I have no idea how, and it almost never happens because the system is set up really well... I would also try another dealer.
Question though, if PATS is corrupted how does your car start? Or does it accept your key and start but the light keeps blinking? I would try the Grants Pass dealer, I think my brother went there a year or so ago and had a pleasant experience. I mean it's your choice, live with whatever the system is doing and wait for it to break something (I don't even know if it would?!), pull off your HVAC surround and cut the wire to the PATS LED if this issue doesn't cause any more harm than the annoyance of a blinking light, try to find this mysterious hack, or take a drive over to another dealer Just In Case they can do it. Hell, give them a call, that's free (or 5 cents a minute or whatever)... explain what you have done, say another dealer gave you trouble and you want to know if they can do it before you take a drive out. Ask to speak to a tech not the Service desk person... then if he says Yeah, go out there and ask for him to see your car.
Randy, I think the light is part of PATS, it's called the Passive Antitheft Light or something. It stops blinking when the PATS key is in because it recognizes that you are allowed to access the car. Before that it blinks to let would-be theifs know there's some sort of security, whether they take that as meaning an alarm, or know it needs a special key to be started, either way it's a passive deterrent. My mom tells me it shaves a couple bucks off the insurance too, if you have coverage for theft.