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Programming a new key? V70-XC70 2001

My first post...
I'm the proud new owner of a used '01 V70 T5. Problem is it came with only one key and one remote. The dealer told me I had to get the key from them and it would cost around $40.00. Thought that was pretty steep (what happened to the days when you could go down to your neighborhood hardware store and have them cut one for $2.00?) but I reluctlantly agreed. Went down to pick it up today and they told me "Oh yeah, you have to have it programmed and it will take about a half-hour and cost another $40.00." $80.00 for a key!!!!??? What the????? Anyway that's when I went searching for an answer and I stumbled upon this site. Found many posts here that address programming the remote, but nothing on programming a key. Never heard of such a thing. Are they pulling my leg? How does it work and could I do it myself? Someone please enlighten me! Thanks in advance.
Kimbokyo






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