That's a little confusing then.
If you get permanent power (regardless of key position) when it is wired as per your photos then the yellow cable must be permanent live (if it were switched live then the stereo would not work unless the key was in)
Yet, connecting it as you should (one wire to ignition live and one to switched live) you get nothing?
The only thing I can suggest is to connect the wires so that the yellow is connected to red and vice versa (effectively swapping positions of the switched and live wires).
There should be no reason for that to work (on the basis that your switched live is connected to permanent and vioce versa) but give it a go.
Instead of disconnecting the red wire from the 2-into-1 connector, dosconnect the yellow. Attach this to the loose red wire on the left hand side of the photo.