It sounds like you have an aftermarket keyless entry system since you said that your car goes into panic when you press and hold the lock button. If you had the factory system your remote would have 4 buttons, lock, unlock, panic and trunk. The lock and unlock buttons would be black, the trunk button would be blue and the panic button would be red.
Since you have an aftermarket system and the driver's door lock switch doesn't work, I'm also assuming that they wired the system into the power locks on the driver's side. The connection there is probably bad and causing an electrical short, or the relay isn't working. You'll need to have someone find the keyless entry brain and check the wires and relays that control the door lock circuit. Also, don't worry about the remote trunk not working. If your car didn't have factory keyless entry, then it didn't have a power trunk release. Aftermarket keyless entry can't control a non-power trunk release unless a power trunk release is installed and that is something most people aren't willing to pay the extra $150 for when they have a $100 keyless entry installed.