Hello there, and welcome to the joys of Elan ownership... trust me it is worth it.
From what you describe I think it may be the Cam Angle Sensor (CAS) but before we leap into technical solutions I suggest you try a bit of detective work, as follows:
Step #1. The famous Paperclip Test
There is a very good write up here:
Decoding the Check Engine Light
If the code given by the flashing light is the popular 41, then it is the Cam Angle Sensor, which can be fixed by following the instructions here...
Step #2. Replacing the Cam Angle Sensor
Cam Angle Sensor Replacement
However you may also want to replace the Oxygen sensor at the same time if your car has one (
Oxygen Sensor Replacement ) as problems with one tends to cause issues with the other.
Other than that, I'd suggest posting what you find from the paperclip test here and the amazingly helpful people on LEC will help you out.
Good luck and Happy Elaning,
Ian
Ford Fiesta Mk2, VW Polo, Golf GTi, Lotus Elan, Honda Accord Coupe V6.
Calypso Red Cali #7683 - Bought at 29,000 miles, and sold at 75,000miles.