Had exactly the same problem.
The lights were caused by the flood sensor activating in the base of the machine.
This in turn was because there was a leak that filled the base with water.
In my case the leak was in the pipe where it goes up the back of the maching and into the spinning arm - broken off at the thread at the top.
Replaced pipe and jubilee clip at base and now works fine.
Ian Thomson
June 2011