According to the UCM/Velbus manual, see https://www.cytech.biz/ucmvelbus_manual.html the D4 LED constantly flashes when the U2 EEPROM is not inserted. Can you check if there is an IC in the U2 socket?
Sorry it appers that the wrong eeprom was inserted in the U2 socket. It should be a 256K eeprom but a 64 K eeprom was used instead, leading the the Error LED blinking
Can you send your name, address and contact number by Private Message or to support@cytech.biz so we can send a new U2 EEPROM