This is a very common problem on GM vehicles. The security system is known to fail. Basically when you insert your key, the system checks for certain OHMS resistance. If the system cannot get the correct signal from the key, it assumes the key is incorrect and goes into SECURITY lockout mode. (prevents hotwiring) This has been happening with GM;s for a very long time. There are ways to bypass this now. Read through this page for info, solutions as well.
http://www.diy-gm-security.com/
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