Once you got things worked out, you can use it on real hardware as well.
It's for instance possible to jump to a TSR interrupt routine when an io is read or written.
It might in theory be possible to emulate the security dongle like that, but it's difficult stuff.
I assume your key is the dallas button style which uses the one wire protocol.
I might still have the IO ports I figured out for the io card. Just let me know if you have any use for them.