Thanks Candyman:
Much appreciated!
I did what you suggested (disconnect the battery) and the airbag icon on the dash still illuminates.
Incidently, I had the seat installed professionally at a car electronics shop recommended by the dealer. The installer said the required plug was already in place and it was a simple plug in.
However, the 2007 drivers seat had another plug set that tied into seat sensors...fortunately there was no weight sensor... a seat rail position sensor was installed on the 2007 seats.
On a side note, I removed the 2001 leather passenger seat

and reinstalled my stock 2007 fabric seat. This was because I was told that the passenger seat weight sensor tells the passenger side airbag system to activate.
Since it is my wife's car....she WANTS the steering column to inflate...and she would also LIKE to have the 2001's heated,adjustable leather seat.
I find that the dealership does not want to get involved (other than doing the $$ diagnosis telling me one of the wires is not connected/or cut under the driver's seat ..which I already knew). The dealership said they did not know the airbag system enough to say if the driver's side was functional.
Like you, I understood the driver's airbag was triggered by impact sensors. I can't see the entire airbag safety system being deactivated because of a loose seat wire, unfastened seat belt, etc....but with lawyers involved (??)..
Candyman (and anyone else) can you shed some more light on the question: is the driver's side airbag still armed and functional now?
Thanks again Candyman...rgds...Ron