This procedure didn't work for me, but kept me trying. I finally got the procedure sent to me by the key seller to work (credit to mykeyless.com, standard disclaimer - I don't work there or have any interest in the company, just found them on eBay. They are very friendly and accommodating). I finally got the locking sequence to work and at least knew that security was listening to programming mode. By the way, the tips about the security light telling you where you are was super and helped me with the process I used.
step 1) - programming locks. this step can be done BEFORE cutting the key if you need to return it if the transponder is bad.
1. driver's door open and unlocked
2. key out of ignition
3. within 5 seconds insert and remove ignition key twice
4. within 40 seconds close and open driver's door twice and insert key, close driver's door, place ignition to on, then turn off, and remove key
6. within 3 seconds, locks will cycle. if not, start over
7. using new key, press LOCK and UNLOCK for 1 second, and release. press LOCK for one second and release.
8. Success if one cycle. Failure with two cycles. Repeat step 7 for additional keys or if key failed.
9. At this point you should be able to lock and unlock.
step 2) - starter
1. window up, doors closed
2. from outside vehicle lock and unlock door with master key
3. enter vehicle, close door
4. start engine, turn off, remove key
5. insert key, and within 35 seconds turn key from OFF to ON 5 times, and OPEN and CLOSED drivers door 6 times, remove key
6. within 10 seconds, insert new key and turn ignition to ON
7. leave ignition ON until SECURITY light goes off. (about 90 seconds)
8. remove key from ignition
9. press brake pedal once forcefully to exit programming mode
10. wait 15 seconds for computer to reset
11. test key by starting the car.