I never understood why anyone likes to have halos on a e36 but to each its own?
If you installed the halos with a harness, you should see a extra wire that you never connected to anything right? Run that wire thru the wire wall hole (passenger side) tap it to the floor lights (positive side +) and that will basically act as a signal source for the lights to fade on. The E46's I do all the time people do like that but its personal preference.
Jump to step 3 (If you have the harness or correct wiring)
http://www.fastm.com/m3/angeleyes_orionv2.html or post picture of what you have as far as wiring and I can see what how to help you.
As for noise, do you have a siren in the engine bay? If you do make sure its connected, if it is and no sound then you have to pull the brain module (under the glove box) and make sure the switch is set to siren as well.
If you do not have a siren, local pull yards and find one from a e36 OEM and just directly plug it in. WARNING ! It must be the ALARM Siren not the car one.
Lights flashing when activating, I have not gotten around to it yet, but my old Ti I did this mod
Links:
http://www.bimmerforums.com/forum/sh...-factory-alarm http://www.m3forum.net/m3forum/showthread.php?t=294907 http://www.bimmerforums.com/forum/sh...OEM-alarm-(e36)
Super technical
http://www.unofficialbmw.com/e36/ala...ory_alarm.html Enjoy!