Okay, to clear up any confusion.. since there appears to be some, here is EXACTLY what the Honda Owner's Manual says about it.
The lights also do not flash on the '96-'98 vehicles and also I imagine you've programmed the stock keyless since it sounds that it's locking and unlocking.
Keys and Locks
Remote Transmitter
On EX models in the U.S.
You can lock and unlock your vehicle with the remote transmitter. When you push the LOCK button, both doors lock.
When you push the UNLOCK button once, only the driver’s door unlocks. The passenger’s door unlocks when you push the burron a second time.
The interior light (if the interior light switch is in the center position) will come on when you press the UNLOCK button. If you do not open either door, the light will go out in about 30 seconds and the doors will automatically relock. If you relock the doors with the remote transmitter before 30 seconds have elapsed, the light will go off immediately.
If you install a non-Honda radio in your vehicle, the keyless entry system will no longer work.
You cannot lock or unlock the doors with the remote transmitter if either door is not fully closed or the key is in the ignition switch.
Horn operation
You can program the remote transmitter to have the horn beep when you lock and unlock the doors. It will beep once when you lock the doors, and twice when you unlock them.
To turn this feature on and off, press the OPTION and LOCK buttons at the same time for two seconds. If ou are turning the horn on, the remote transmitter’s LED will come on for one second. If you are turning the horn off, the LED will blink twice. Release the buttons after the LED goes out.
The horn feature will be off after you install a new battery in the remote transmitter. Use the above procedure to turn it on again.
Panic Mode
Panic mode allows you to remotely sound your vehicle’s horn to attract attention. To activate this mode, press and hold the PANIC button for about one second. Your vehicle’s horn will beep for about 30 seconds.
To cancel PANIC mode before 30 seconds, press any button on the remote transmitter. You can also tirn the ignition switch to ACCESSORY (I) or ON (II).
Panic mode will not activate if the ignition switch is in ACCESSORY (I) or ON (II).