is this always liked to a keyfob?
yes.
I believe there is a chip in the key which is paired to a device in the barrel when the two are in close proximity.
apparently replacment keys cost something like 400 quid to be re-programmed by honda!!
Learner is right - it is the key not the key fob that contains the HISS chip. So you do not have to blip it or anything just insert the key and switch on.
coolio! thanks guys! 
Yeah you should a red master. DO NOT LOOSE!!!
Not quite as scary as that. The CDI unit will only ever allow four keys to be programmed to it (if I remember correctly) in it’s life. There is no master key (Red key) but so long as you have one key you can have a further 4 cut and programmed in. Loose all 4 and yes you will be stung for a new CDI and labour somewhere in the region of £400+.