Well you have me stumped there. The engine management lamp on all Vauxhalls flashes when the transponder signal is not being received, but I've no idea why else it would flash. Certainly 1996 models were fitted with a transponder system, unless yours is one that slipped the net or it's actually an older car on a newer plate.
The next thing to check is to make sure you have an HT spark at the plug when cranking. Also the fuel injector should operate when you crank the engine, and fuel should be seen spraying from it. If you have neither then unplug and reconnect the crankshaft sensor and try again.
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