drive keys are known for many problems cause you just fit them on. Make sure it isnt loose first of all and second make sure you know for a fact you have a real drive key. Gotta watch out for fakes I mean , people sell fakes and they dont end up working. I know for a fact when you place on a drive key you are suppose to be able to read the config disk. Sometimes it takes recognition though meaning keep trying the config disk until it works. If it isnt i would suggest soft modding.
as i said, the Config part works, i can press eject 3 times and i get to the config screen fine. originals boot fine, so i know the connectons are right, because they would fail if one of the ribbons is not connected correctly, but as yet, no backups will boot
what kind of dvd media are u using i have modded 4 systems with drive key and all work with out a glitch, i did have an issue as you are having and that was because of the dvd media i was using an unbranded one now am using verbatim and the result is 100%, hope this helps