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I believe the flashing light is simply telling you that an event has occurred which makes the alarm want to tell you so. Do you have an aftermarket radio? Perhaps they erroneously attached the green wire to the radio chassis or frame. Check to be sure your trunk, engine compartment or glove compartment light isn't staying on.
Small update to everyone that have been tuning in...
I did find out that my car is one of the early driveblock versions.
The reason why the car was acting up a bit was that the alarm module had a burned pin due to bad earth on the module (it is mounted on the foot well plate) - don't know if it is a common issue, but luckily there are 2nd hand dealers out there and I got a replacement module for 175 USD.
Only problem was getting the connectors to the loom, since they had also melted a bit.
- Anyway, after some sourcing I now have a new one of those...
Module should arrive any day now, until then my baby is grounded, but spending the time wisely as she is in the body shop getting a new S-front fitted - Cannot wait to drive her again :-)
Wish me luck that when this is sorted out the alarm will be working..
Nic
Make sure you get the remote programming code from them for the replacement unit. But you knew that already, I bet.
Good Luck. Let us know how it turns out
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