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Being the owner of a 2002 K1200LT and having both those features I know the answers.
The little read light is for the alarm. I turn mine off and it blinks twice (even when not armed) once for each remote. It will then blink after a number of seconds to indicate that it is armed. It the bike is disturbed, it will also blink for the number of times the alarm is triggered. You can also set the alarm to auto arm when the motorcycle is turned off or to be manually armed with the remote (setting "B" I believe). There are instructions in the alarm booklet for doing that.
The GPS. It's a BMW Nav I which is a Garmin Street Pilot III. I had it on mine. It's no longer supported by Garmin and updates are no longer available. Before replaced mine 2 years ago, it would sometimes take FOREVER to obtain the satellites. It always took forever to recalculate. But if you ended up getting the MapSource CDROM and computer cable, you can create routes on your PC and send them to the GPS. You'll need the little Garmin lock tool to get it off the motorcycle though.
Oh and by the way, my warning sticker about the ABS Servo Assist brakes looks just like yours!
Chris
Oh this GPS uses a remote antenna and there is no internal antenna. The antenna plug is different from the power plug you can see on the upper left of the GPS. It's a metal "turn once" to connect and without it the GPS won't see the satellites.
There was a GPS or two after it that could be made to work with the existing wiring and intercom but nothing current. We went to Bluetooth headsets and I just replaced the old GPS with a Garmin Zumo 220 when I did.
I notice the 2nd antenna too. Does your CB work? I could never get that old Midland to work even after I replaced it. The CB will only work through the intercom and helmet speakers and not the fairing or top case speakers.
If you haven't found it yet, you may want to head over to bmwlt.com too as there's a wealth of knowledge over there about the K1200LT and I know GPS comes up all the time. Just don't ask about what oil or tires to use!