Okay, so yours is the Mk2 and later grips but, as Shed said, the operation is pretty much the same.
1st press - full
2nd press - medium
3rd press - low
4th press - off
Presumably the number of flashes indicate the power level, if it's flashing constantly then there's not enough power so the grips won't operate, which can happen if you try testing them at tickover straight after starting the bike (charging system will be directing power to top up the battery as well as run the bike), once the revs rise then the light will be constant and the grips will heat up, which pretty much sounds like what you're experiencing.
I've fitted the Oxford grips to my wife's CBR and they have nice up and down buttons and different lights for different power levels - much more helpful!
Phil