That sound to me like a VATS issue. The anti-theft system on the C5 is designed to prevent the car from cranking if it doesn't detect the proper resistance on the key. If you look at your your key, you will notice a small silver stripe that is enclosed within a black oval. This is infact a basic resistor. When inserted, the car will determine if the resistance is correct, and allow the starter and fuel pumps to become energized.
Many times, these surfaces can become slightly oxidized and skew the resistance value enough that the vehicle will no longer start. I would clean the key surfaces with rubbing alcohol, and then try again. You can also use a multimeter (ohm meter) to read the value of the key to ensure it at least producing some sort of resistance. I have seen the resistor in a key fail entirely before.
Hope that helps..........