Hi,

This is a well known issue on this model and is always the result of a faulty blower resistor. The blower resistor is the resistor pack in the air duct just between the blower motor and the center air handler, mounted on the top of the duct work (accessed from behind the glove box). The issue is that the resistor pack not only reduces fan speed, it is also used as a fan-on signal for the AC ecu to let it know it is safe to run the compressor. The reason for this is if the fan were not working, the evaporator could freeze up which could ultimately lead to compressor damage. Of course this is not the case for you, it is simply a faulty signal through the resistor.
Replace the resistor and your problem will go away.

I am attaching a diagram of the failure point to help show why the light comes on (compressor cycles etc) when set to 1 and when set higher it does not.


The resistors are quite cheap, even through Mitsubishi they are less than $30 typically, and most dealerships will stock them as this is a very common problem on the last gen Eclipse.

If you have any questions just let me know.
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