gm transponder bypass programming

Hi, I seem to be having trouble  programming my PKU-GM. This is what I was told per the instructions and previous installer help:
 
Insert valid PK3 key, turn ign to run for 2 sec, then off
Immediately hold backside of bypass module (no harness connected) to transponder ring and then RS vehicle. I also tried this method w/ the module harness connected just to see if that worked.
 
Now the RS works perfect w/ the GM key in the ignition or even holding it against the transponder ring but will not RS w/ the bypass...hence its not programmed. I called tech support and they told me to try the following:
 
Try using both keys (my actual key I use everyday and my spare), then hold module to ring.
Try taking the chip out of the module and holding it against the ring.
 
This is the second module they sent me and still nothing. I can't imagine I received 2 bad modules. Is it possible that my 04 Grand Prix will not program any more chips for whatever reason? Some king of GM security precaution? I bought the car used and only got 2 keys but I am not sure how many keys at some time or another have been programmed to my car. I was thinking of calling the dealer but am sure they will be of no help.
 
Has anyone encountered this problem before? If this PKU-GM will not work for me what module can I use (while losing a key) that will work for me?

Thanks

If I decide to scratch the whole keyless idea and use a bypass that requires me to use a key is there any drawbacks to using them, other than the key loss?

I was told by tech support that colder temperatures may influence the way the key chip vibrates and thus not send the proper signal to the transponder. Is this true? I find it hard to beleive but I want to be sure.

Thanks