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Many GM Vehicles have a little metal chip in the key. This means your car is equipped with GM's anti-theft device called VATS ( Vehicle Anti Theft System ).
How it Works: Inside the Ignition Key Cylinder are two very tiny wires that connect on either side of the chip when the key is inserted. This allows a signal from the engines computer to travel through the chip in the key and then start the vehicle.
The Problem: These two tiny wires tend to get bridle and break and the contact points that touch the key also become worn and no longer carry the signal.
Bypass procedure: What you need to do is use a multi-meter and measure the ohms of resistance of the chip from one side to the other. (thats right, the chip is just a resistor). Once you have the measurement, take yourself over to Radio Shack and buy one for around $1.29. Look below the column for this 2 tiny wires and expose them(you do not need to take the column apart) Install the resistor and you are good to go.