I'm a fan of Compustar systems. Currently I'm installing a 1-WAMS unit in my beater, very nice finish and remotes, all the options an AM unit can have.
If you want really long range (like +800ft.), you need to start looking at FM units though.
SonicElectronix.com is an excellent and cheap source for these, whatever you do don't go to bestbuy/futureshop.
Not sure if a bypass is needed on a 1987 model, but the cheap solution (at least in my 2002 beater) would be to zip-tie an original key to the tumbler, and use a copy to start the actual car otherwise.