ikalinin wrote:bought this as a water damaged car, off an auction. :/
so no warranty, voided.
With this in mind, it's any level of electrical issues.
How many keys did you get with the car, and do you know if they were water damaged? I would start there, as a repair at each step in the troubleshooting process from there is more expensive than a key replacement. The light is on because it cannot communicate properly with they key. Have you tried inserting the fob into the backup tray to the left of the steering column on the underside of the dash? (this is used to communicate with the key in the event the battery is dead within the fob - note that it is not meant to charge the key.)
Have you verified that the seat rails/track contain no obstructions or anything of the sort that would fuse the seat in place? Do you hear the power seat motor attempting to operate, or does the switch not seem to activate anything? As far as the seats, it's either the motor, the switch, or something in between and would not be related to the key error.