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Well, I will presumably assume that there was no abuse (in other words you pulling on wiring harness or any other thing that can cause the wiring to come off). You indicated 12.68V - was that measured when the car is on or off? If on, that is fairly low voltage.
Given that your car worked fine and no abuse before, I would not be concern about those wires.
You have checked the fuses. Given the age of your car, I would concentrate on checking the grounds. Look up on the service manual...find the common ground for the instrument panel/radio....unbolt it, clean the ground by lightly sanding the connector and car body (spray whatever you need or apply whatever solution/grease)....then reinstall.
My 95 camry had some mysterious problems for years - engine shuts off randomly, horn shuts the engine off, headlights always on, fans half speed, etc. When I sat down for 2 weeks figuring it out.......turned out it was a bad ground. Believe it or not, when I cleaned that ground......everything worked properly. Electricity is like water, it will find the least resistance path.
Now as for the alarm....you may want to look whether that lose wire is part of the alarm or not.....if it is, you're probably on your own on that one. Alarms vary a lot from one system to another, although there are some commonality.
Last edited by toovira; 07-11-2010 at 10:13 PM.
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