i have all the identical symptoms you do including the red/green flashing lights, etc. even though the 1996 e320 factory alarm does not have a kill switch, it seems related to the alarm, doesnt it? especially because the red/green lights have always flashed together, and flashed a full minute, before i ever had any starting problems. it seems like the alarm has a short that is draining the battery, do you agree?

i can always get it to start by sliding the gear shift through the gears a few times, then starting (usually in neutral). mechanics tell me this means the neutral safety switch likely needs replacing, but it seems to me this is all related to the alarm working strangely.

i can also remedy the double-flashing alarm lights by resetting the alarm by manually locking and unlocking the door. i forget exactly which order, but if i switch back and forth between manual locking and remote locking, i can get the alarm lights to flash red for lock and green for open.

can you reply if you have any suggestions?