The PATS(passive anti-theft system) is part of the Computer and in 1998 PATS module system.
So which year computer will you be using for the V8?
1998 to 2001 Explorers used PATS Type B, which had separate PATS module(above glove box) that was "married" to the computer in that vehicle.
"Married" means they are a match set, you can't use one without the other and if you need to swap either one the new part needs to be "remarried" by a Ford Dealer.
EEC-V(Ford computer) programmers can eliminate PATS from the computer, also taylor make the "Tune" you want for your driving habits.
You would have to check around for that pricing, this would allow you to keep current 1997 Ranger door and ignition keys as is.
PATS uses transponder keys, RFID tag in the Black plastic handle, no batteries required.
The ignition cylinder has an antenna loop around it, a transceiver, when you turn on the key this antenna "reads" the unique Tag numbers that comes from the PATS key.
The PATS module is connected to the antenna, it will have 3 PATS key numbers in its memory, these were programmed in at the factory, to match the 3 keys that came with the new vehicle.
If PATS module has a Match for the Key being used in the ignition then it sends a verification code number to the computer, this number changes each time key is turned on, so not a simple "yes/no" that can be bypassed, computer and PATS module share an encryption key, look up RSA encryption, thats the "married" part.
If Computer gets the correct verification code/key then it turns on fuel pump and will turn on fuel injectors when key is turned to START.
With no verification or the wrong code/key the computer won't turn on the fuel to the engine.
Starter Motor disable relay was also used in some years, so no crank along with no fuel.
So the parts for PATS are
The matching PATS keys for the PATS module
The antenna loop around the ignition cylinder and its wiring to the PATS Module
The PATS Module and its wiring to the computer
There is also the RAP module(Remote Anti-theft Personality module), this is the keyless entry system and it is also connected to the PATS module, but I think it is just for the Theft light use
Wiring diagram in this thread:
http://www.explorerforum.com/forums/index.php?threads/anti-theft-light-flashing-on-dash-car-wont-start.230995/page-3
The two "Data Link" wires in drawing go to the Computer(PCM)