That is correct.
http://passlock.bloggstar.com/reset-passlock-vats/
Basically, get in, try to start the truck, and it will die. Leave the key on until the security light turns off (~10 minutes). Once the light turns off, turn the key off for 10 seconds, then try to start it again. It will start and die, and the security light will turn back on. Again, leave the key on until the light turns off (another ~10 minutes). Then turn it off for 10 seconds, and try to start it again. Again, it will die. Leave the key on again until the light turns off. Then turn off the key for 10 seconds, and try and start it again. This time (start attempt #4) it should start and stay running. That will cause it to learn the new password, and it shouldn't cause the problem again.
If you are having a problem with that procedure, you can get a GM Tech2 to reset the password instantly.
Alternatively, what I do is set the passlock learn time from 10 minutes to 30 seconds in my tunes, so that if/when the ECU freaks out like this, it only takes ~4 minutes to get going, instead of 30+ minutes. That does remove some of the security from your ECU, but I figure if someone is stealing the motor & ECU out of your vehicle, the difference between a 4 minute relearn and a 30 minute relearn isn't a big deal to them lol.