Not sure how to disable it completely, I'm going to call in the help of a much wiser 'Tour owner (SVT2059) she really knows her stuff also.
Here is some stuff I found that may\may not be helpful.
1. Does your red flashing LED light push in (I doubt it). If it does, push it in, if you get a double flash that means the ignition lock out is now disabled (this may have only been an option in 95 models). If that works and you are able to start the car, shut the car off and push it again immediately, that should disarm it until that button is pushed again.
2. Do you have key fob(remotes) If so, try locking the car via remote, then unlocking, this also is kind of an odd setup but a few cars have it, known as the Ford System 4 Alarm I believe.
Not that this is inspiring, but since both of the above are not common OEM setups for the Contour (dealer added) I doubt these will work, but yeah, anything is worth a try!
Let me know. Again, I'm going to PM SVT2059 and have her take a look at this, she may be able to offer some insight that I have missed. We are both long time Contour owners\enthusiasts. Don't let this sour you on the cars, they are great cars, and if you treat em right, they return the favor! | 
