Make the key an anchor point and move it with mass and inertia.  That is a
good starting point.  Can I assume that the chain is around a neck or other
similar object?  You can easily enough assume that two points tangent to the
neck will be fixed for small movements.
    A real chain is more complex, and has every link responding to inertial
forces, but even a macro-created chain could provide you with the proper
locations of each point should you choose to calculate it that way.

Cheers!

Chip Shults
My robotics, space and CGI web page - http://home.cfl.rr.com/aichip

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