I have a Clifford concept 600 uk Spec. When the Blue light stays on all the time it means the valet mode is on, this is where the lock/unlock button will operate the door locks and immobiliser and that is it the alarm is not set. It is intended to use when the car goers to the garage, where having an alarm may complicate things for them.
You can turn the flashing lights on and off with the Clifnet Wizard I think. Been a while since I played around with it.
If you have a manual have a look in there because different key combinations will do different things, disable sensors, silent set, remote valet, headlights etc.