The blinking lights I can help with - that is a standard issue across all Generation I units.
It means that the exercise timer is not set.
To properly set the exercise timer, you must do it on the day and time you want the exercise to run. IE - if you want it to exercise at noon on Friday, you need to do this at noon on Friday.
With the switch set to AUTO, press and hold the SET EXERCISE button until the genset starts (about 10 seconds).
Let the genset run through an entire cycle, and shut itself down (about 12 minutes).
Do not shut the unit off during the cycle, or the exercise timer will not be set.
This is the mistake a lot of people make - they shut the unit off during the exercise cycle.
If the exercise cycle still will not set, then the controller is bad.