without a workshop manual to guide you through the procedure of course you will be lost
indications that you have not got it right and now there are more bent valves
The screeching noise is most likely the alternator belt slipping. The higher RPM suggests that alternator may have failed. There is a second belt for the AC. If the alternator belt is self destructing, be aware that it runs the water pump as well, and the engine may overheat. Have the engine checked ASAP.
Things to check are the clutch safety switch and the start relay. Use a volt/ohmmeter to interrogate the relay socket. From there, you can see if the signal is getting past the clutch switch. You can also start the car from the relay socket, if the downstream circuit is good. Make sure the car is in neutral before getting into the relay socket.
Actually your information is a little off. The device that is preventing you from starting the car is the immobilizer unit that sits right behind the stereo mounted on the floor. The key houses a resistor in fact and not a microprocessor. The immobilizer unit and the ignition expect a certain amount of resistance that is "Programmed" in each. It's an anti theft feature that was designed specifically to prevent this kind of action. Here is a workaround and should provide a solution to your endeavor. Good luck