Okay.. Here's what I've done.

First, I called my insurance company to find out what to do. They were pretty much clueless, but they did tell me:

#1. You can not insure a vehicle that you do not own or is not in your name.
#2. I legally have to have MY name on that car since I am the co-borrower and in the paperwork from Wachovia it states my name must be on all paperwork regarding insurance.
#3. If the car is wrecked and myself or the ex isn't driving it, the car WILL be
covered IF there is a FULL-COVERAGE policy held on the vehicle AND the
person driving the car does NOT live with myself or the ex; however,
when or IF the case goes to court and the person driving the car can be
proven to be the main driver of the car, the insurance company will NOT
pay for the wreck no matter whos fault it may be. That's called Insurance Fraud and is frowned upon.
#4. I'm a complete dumbass for buying the car in the first place with a signer that is not family. (ie. Mom, Dad, Bro, HUSBAND, etc.)

Second, I contacted the dealership where I bought the car to get an additional key made. Unfortunately, I can not have a key made for the car w/o the vehicle present because the key has a chip that must be programmed to the car. (Bummer)

Third, I contacted Gainesville City Police Dept. I can report the car stolen and when they find it, they will have the vehicle towed to the local Chrysler dealership to have a key made (provided that the person driving the car is unwilling to give up the key).

Fourth, I called my father to ask him what to do. He was clueless as well; however, he said he will back me in this situation in doing whatever I need to do. (Gotta love dads!!) He told me to have all of my ducks in a row and be ready for a war.

Fifth, I called the angry grandmother. She refuses to answer all calls from me. I left her a calm message stating that she has 24-hours to return my phone call and that I wanted to discuss them refinancing the car, selling the car or trading the car and getting it out of my name. I stated that if she wasn't compliant with my demands that I will report the car stolen. I also stated that I received a letter from the finance company reporting that the payment for the month of September was late.

I've made sure that everything I'm doing is 100% legal (I have quite a few law school friends as well as friends that are attorneys). The police said they will escort me in doing whatever I need to do to get MY car back. I have all the records of the checks written when I bought the car initially, as well as the receipts showing that I traded my Cavalier on the car. I have the insurance paperwork showing the VIN number and the tag receipt from when I bought the first tag. Plus my ID to prove that the car is mine.

So now, it's a waiting game until 5 pm today.