Here are instructions, based on advice I found on other websites:

To disable the alarm you need to ground a wire that is running throught the drviers door jam wire
harness. It is a violet with a yellow tracer wire. It needs to be put to ground.

On the drivers side in the foot well area just above the hood release mechanism you should see the
wire harness that is coming from the drivers door.

In that group of wires, locate the violet with a yellow tracer wire. Do not cut the wire. Instead, strip
the violet/yellow plastic off to expose the bare wire.

Get a section of new, similar gauged wire (18 guage works), and strip away the plastic on both ends
to expose the wiring. Take one end of this new wire and wrap it around the exposed section of the
violet/yellow wire.

Take the other end of the new wire and ground it to the body of the jeep. This will ground the system
and should permantly disable the alarm system.

Here is a link that shows a diagram of what I have described:

http://www.allexperts.com/user.cgi?m=17&imgID=40582

use box diagram Jeep Grand Cherokee 1999-2004

 For the Jeep Grand Cherokee second generation 1999, 2000, 2001, 2002, 2003,
2004 model year.

Fuse box located.

The fuse panel is on the lower instrument panel just to the left of the steering column. A
label is stamped on the fuse panel cover to identify each fuse for ease of replacement.

Fuse box diagram.

legend.
Cavity Fuse Description

1 Spare

2 Spare

3 10 Amp Red Headlight High Beam Left

4 15 Amp Lt. Blue Flasher

5 25 Amp Natural Radio/Amplifier

6 15 Amp Lt. Blue Park Lights

7 10 Amp Red Interior Lights

Overhead Console, Rear Wiper, IP Lights, Rear

8 15 Amp Lt. Blue
Flipper Glass Solenoid

9 20 Amp Yellow Power Outlets

10 20 Amp Yellow Adjustable Pedals

11 10 Amp Red Rear Window Defroster Indicator

12 10 Amp Red Auto Shut Down Relay/ "Fuel"

13 Spare

14 10 Amp Red Headlight Low Left

15 10 Amp Red Headlight Low Right

16 10 Amp Red Headlight High Right

17 10 Amp Red Instrument Cluster, Diagnostic Connector

18 30 Amp Trailer Tow

19 10 Amp Red Antilock Brakes

20 10 Amp Red Ignition Run

21 10 Amp Red Ignition Run/Start – PDC

22 10 Amp Red Ignition Run/Start

23 15 Amp Lt. Blue Brake Switch

24 15 Amp Lt. Blue Fog Lamps

25 20 Amp Yellow Accessory Delay Relay (Sunroof)

26 15 Amp Lt. Blue Cigar

27 15 Amp Lt. Blue Rear Fog Lamps (If Equipped)

28 10 Amp Red Body Control Module, Acc/ Run

29 10 Amp Red Rear Wiper Switch, Washer Motors

30 15 Amp Lt. Blue Radio

31 10 Amp Red Ignition Start

32 10 Amp Red Ignition Run/Start-Airbag

33 10 Amp Red Ignition Run/Only – Airbag

 C1 20 Amp Wiper (Circuit Breaker)

C2 20 Amp Seats (Circuit Breaker)

C3 Spare

Underhood Fuses (Power Distribution Center) Jeep Grand Cherokee 1999-2004.

Your vehicle is equipped with an electrical power distribution center located in the engine compartment
near the battery. This power center houses plug-in “Cartridge” fuses which replace in-line fusible links.
The power center also contains “Mini” fuses and plug-in full and mini ISO relays. A label inside the
latching cover of the center identifies each component for ease of replacement, if necessary.

fuse box diagram.

1. Blower motor 40A
2. Junction bus power 40A
3. Junction bus pwr lamps 50A
4. ABS pump 40A
5. TCM power 30A
6. ASD 30A
7. Junction block pwr 50A
8. Ignition starter 40A
9. (not used)
10. Radiator fan relay 40A
11. (Empty, for IOD fuse storage)
12. Power windows 50A
13. OSS pump 60A
14. Ignition switch 40A
15. JB power 50A (IOD)
16. 02 sensor 15A
17. Cluster / Data link 10A
18. Horn 15A
19. PCM 10A
20. OSS module 20A
21. AC clutch 15A
22. ECM 10A
23. Cabin heater relay 15A
24. Fuel pump 20A
25. ABS main relay 20A
26. Injectors 15A
27. Rear pwr outlet 20A
28. TCM 15A
29. Fuel pump
30. Starter motor
31. TCM
32. Wiper On/Off
33. Wiper Hi-Low
34. Rear 02 sensor/Viscous cabin heater
35. Backup lamp
36. AC clutch
37. Horn
38. Auto Shut Down
39. OSS module/Glow plug
40. OSS pump/Glow plug