Thanks for your help, guys!
I took the key back and had them regrind it. It worked like a charm. All I had to do was put the original key in, turn in to on, then off. Within 15 seconds insert the new key. Done!
I think the guy f*cked it up on purpose because he wanted to argue with me, saying that I had to have their mechanic program the key for $45. Hahaha.
