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I installed Nav with XM out of another 05, had to get GM to unlock the Nav, that was easy.
When the car is on ACC the XM works fine too, but when I start the car I get "XM Locked".
I took it back to the dealer and they checked with the tech 2 but couldn't find how to unlock the XM, they were really good about helping, but admitted they hadn't seen this before.
Unlike the head units, you can't, or at least I've never heard of it being unlocked.
Dealers can't get to the box via Tech II and it locks to the VIN of the car from the BCM when its installed. No answer I've ever seen. Unfortunately if you want XM via the NAV system you'll have to purchase the kit for dealer-install. Gene @ GmPartsHouse.com may sell them, might want to check with him.
I just looked in the manual for my '07 and all it says is bascially that its a "Theft Lock" mode where the VIN# doesn't match what's in the BCM. It says that this will set a code (not which one), and states to use a Tech 2 scan tool to fix it. The implication is the dealer should know what to do or call someone in their system to tell them how to do it.