electrical problem

[orion]

I have recently purchaced 1995 525i, and the more i get into this car the more I am impressed with it, but the car has got a problem that confusses me. I have read many posts about the alarm but they are not the same problem as I am having. The keyless entery works, but the alarm will not arm, or disarm, The car had a radio installed when it was purchased, and I checked the wirring behind it, and only some of the wires were used and there were many left connected to the plug and sitting back there, also i read a post about that and it seems that just the positives should be used comming out of the radio, but in my car both + and - are conected, and since it works i dont try to fix it. I am not sure if the radio wirring could affect the alarm, but my question is why is my alarm not working but the keyless is working if they are the same unit, and how do i fix it?

[orion]

yes the red light and the microphone are under the vents in the rear, the key fob has 3 buttons but the lettering is worn away if i hit the top button 1 time it locks and if i hit it again it unlocks, and i cant read the 2nd one, and the bottom one says panic but when i hit it it doesnt work, when i lock and unlock the horn beeps a few times each

[shogun]

Where do you live? US, Asia, Europe?
Different specs on the cars. Is you car a US spec car?
For example my one has Japan specification, as I live in Japan.

Maybe you complete your profile with your location and the car details, helps us a lot to help you.

[orion]

it is US spec, and the microphone thing i refered to was a glass breaking sensor, i think, it detects the sound of the glass breaking in case of forced entery.