RF600E & RF600D encoder/decoder problem

Hi, I am trying to finalize the project made with rf600e encoder and rf600d decoder from rfsolutions.co.uk
Here is the problem I am facing:

• The datasheet says that once learn button is pulled low the status led will glow - IT DOES THAT
• Press the transmitter button once the status led on receiver will go OFF - IT DOES THAT
• Pressing the button second time, the status led will flash and when it stops flashing the transmitter is learned - PROBELM
  • The problem is that when I press the button on the transmitter the second time, the LED flashes and stops when the button is released
  • This process repeats itself for as many number of times as I press the button for.
• All my outputs (S0-S3) stay high at the decoder. Pressing any button on the transmitter does not change the state of any of the output except making the status led flash.
• I have followed the reset-learn process a few times but I always hit this dead end.

If someone has used these ICs, can they please share there experience so I can see if flashing status led on every button press is normal and how to figure out what is wrong with what I have done. Thanks