The flashing while it's not running is normal, I think. So is the flashers going off when yo move it without the fob. That's the "alarm", showing the the bike ignition is immobilized. You need to buy a separate audible alarm unit or see the sticky in the DIY section about installing a siren from radio shack.
Not sure about the security light staying on when you start the bike. I'll have to check to see what mine does.
2012 Palladium Silver Road Glide Ultra Vance&Hines Power Duals w/ 4" Twin Slash, FP3, Progressive Monotubes- Touring Link-444's, LED headlights/turns/brake, Hawg-Wired Four-In-The-Face, Enforcer Wheels, Rushmore Bags, Madstad, Detachable Tour Pak, Air Horns
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