1999 Honda Odyssey engine dies while driving

Our 1999 Honda Odyssey (96,000 miles) has a problem that has the dealership tech guys somewhat baffled. Recently, we were driving our van when all the lights on the dash flickered, the engine died and the
green Key light comes on and stays on. We had to put the van back into park to restart the van. We brought it to our local Honda repair center. They drove it, but the engine did not fail for them. The tech told us that his best guess on what is at fault would be a part within the engine call the Transponder, a device that identifies the keys with the vehicle or something like that. He ran a diagnostic of the Transponder and it was found to be working. A new Transponder would cost $237. I'm not too fond of paying that price for just a guess. The service rep also suggested having the van towed to the dealership when the engine fails. I need help with this problem. Could the transponder show no fault when hooked up to diagnostics, but fail during normal driving ? What else could be going on ?
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Almost anything could cause the problem. Any other keys in the ring with transponders. How much weight on the keyring. Honda ignition doesn't like a lot oh junk hanging on the ignition key. Could be transponder, could be fuel, could be almost anything. Do a search on www.odyclub.com forum for the problem. It has been discussed many times...

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Thank you for the reply. I do have a second set of Keys on the key ring (Toyota Camry) plus about 4 or 5 other keys, but those keys have been on our key rings for a long time. I will check out the www.odyclub.com website. Thank you. Woody wrote:

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sprunty wrote:

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I might be wrong, but I think the transponder is only needed to start the engine. It sounds exactly like the "Great Ignition Switch Recall". Dies unexpectedly, often at the wrong moment.
There is no recall for your year, but the symptoms sound the same. SEARCH google for more confirmation.
Read all this stuff about transponders to be sure:
http://www.tegger.com/hondafaq/tsb/other/index.html
'Curly'
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Ok - quick update. I went to the Odyclub.com website. I found a post from another Odyssey owner with the same problem. They replaced the ignition switch and that fixed their problem. I printed the page and brought it back to my dealership. Their tech checked the ignition switch and agreed that it was the cause of the problem. Why their tech did not check the igntion switch when I said the "key" light was coming on is a mystery to me. Thank you all for your help. I couldn't have solved this mystery without your input.
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