555lw not learning code

It seems the 555lw on my 99 silverado is not reading the correct passlockII code. I do the learn method on it properly and it starts with the key properly, but will not remote start.

I did however narrow the problem to the blue/black wire remote start negative output to the 555lw.  Whenever that wire recieves a ground, the car will not start. Even with the key, if i ground that wire from the 555lw, the car will not start.

I concluded that means that the 555lw is not learning the correct code, so when i ground that wire, it sends its own code, which does not work with the car.  Any ideas?