OK that is the Premium Export version that uses ultra sonics to detect that someone is moving inside the cabin when the Security system has been activated.
The 2004 KJ Service Manuals are impossible to get hold of but the 2003 Jeep KJ Service Manual should be close enough.
You can download this manual on the link below...very useful manual to have. Section 8W has the wiring section while the Index page gives you the other sections of importance.
The 2005 Jeep KJ Service Manual gives pretty much the same explanation of the Security System as the 2003 Manual so either can be used for your 2004 KJ.
Also download the Section 2_5 2_8 Export Diesels which has some good information on the early Export Diesels such as the CEL codes and what to do about them.
That Module on your ceiling is called the ITM (Intrusion Transceiver Module).
The security system is explained in
Section 8Q of the manuals.
The bad news is that for any problem in the system to be diagnosed the Dealers DRBIII scan tool is needed to diagnose the problem!
My experience with the Jeep dealers is that they are pretty useless in how to use this DRBIII tool.
The other bad news is that the communication between the various modules involved here such as the ITM and the BCM is all done using the PCI serial communication Bus (Programmable Communication Interface)
The first KJs used this PCI Bus only....my 2002 Export 2.5 CRD uses only PCI. I drove into a BOSCH Dealership and asked the Technician there if he could read out any stored CEL codes from the BOSCH ECM that this diesel Jeep has installed. He took on quick look and shook his head!
It is pretty much impossible to find any scanner that can read PCI codes.
So the only way I can get any CEL codes is by using the "key" method which has limitations.
Later KJ models started adding other Busses in addition to PCI such as CAN, SCSI etc.
I will look up the various CEL codes possible to see if there are any relevant codes for the Security System....maybe the "key" method will provide some clues as to why your Security Lamp is ON all the time but any codes will probably be stored in the ITM which requires the DRBIII scanner.
OK I cannot find any CEL codes for the Security System.
You can try test if the Intrusion System is working by sitting in the cabin and closing all the doors using the key fob. Once the red light stops flashing rapidly....move about in the cabin and see if the alarm goes OFF...should be a siren...not the horn!
Section 8Q shows that you can disable the ITM by pressing the "lock" button on the key fob 3 times while the red light is flashing rapidly, read this up in Section 8Q
If the BCM or the ITM is ever replaced then the Dealer is supposed to re-program both modules with various information such as VIN.....probably this has not been done!
You should have a Hood Closed Switch mounted in the engine bay right side facing upwards which closes a contact when the hood is opened. This sets off the alarm if the hood is forced open. I wonder what would happen if this switch is faulty? Try disconnect the connector on this sensor so that it thinks the hood is always closed and see if this maybe stops your small red LED being lighted all the time.
Jeep KJ Manuals:
www.colorado4wheel.com/manuals/Jeep/KJ/