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There are a few issues here...
There's the key code used to actually cut the key. If you have any of your keys they can read this from a dupe or valet. If you don't have this you won't be able to turn it in the cylinder. This is the 5 digit code referenced above.
If it's like my Lexus, the master key (all of them really) also has a chip that must be sync'd to the computer to let the engine start. If you lose the master key, the code from a new key must be programmed which takes about 1/2 hour. The computer is limited in the number of keys it can hold.
$250 isn't a bad price from a dealer. Many locksmiths can do it as well. A local place charges about 40 to cut the key and 120 to program. If the 250 is with an OEM key I'd consider it.
The common scenario is when somebody buys a used Toyota or Lexus without a master key and gets screwed...just been through this...PITA.
-spence
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