The red and green lights flashing is telling you the lockout is working and the car is trying to protect itself from theft. If it were mine the first thing I'd do is order a brand new key from the dealer and try that. What you may be experiencing is what I have been through with my '98...failing keys. I have had the two original keys fail to start the car. They both start as intermittent problems. On my '98 the system is a little different though so the failure is not the same but I think the earlier ones would actually allow the car to crank but not start if the car's security system didn't get the right code from the key. If you have a known-good spare key try that too but I know from my experience a brand new key fixed my problems.

While it is possible it is still the K40 that is bad, I'd try the key thing first...then the K40 replacement...I'd bet one will solve it. I don't think the fuel shutoff is at fault because of the flashing lights. There is no electric fuel pump in your car so no FPR exists...but if it did have a FPR it would be on the K40 board...maybe that is why the tech said this.

Both the K40 and key are relatively cheap fixes so you're lucky in that respect.

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Marty D.

2013 C300 4Matic
1984 BMW 733i
2013 Lincoln MKz