One thing that is odd in your thread "I left he key in the ingition and arttempt to remote start.. It starts fine! "
This doesnt make sense to me since a passlock system does not use a chip in the key. The pass lock is based on the ignition barrel. "The PassLock system works when the lock cylinder moves a magnet past a Hall effect sensor. The sensor then sends a signal to the control, which GM has moved several times over the model years. The control then sends the code to the PCM. If the code is correct, the PCM will allow the car to start and run."
The key bypass is done on the J1850 connection. I would first start by re checking this connection. if any type of wuick connect was used, remove it and make a proper connection.
You can also try flashing 70.21 into the module, re program it and re test it.