the light is ABS warning light, caused by a broken drive belt to one of the 2 pump/modulators droven from each of the fornt drive shatfs - either a broken belt , OR the switch has poped out of its housing showung a broken belt.

i had a k plate 16v rs1800, and that was a rusty bad of nails with Awfully heavy steering - likw wooden siezed feeling, but apparently thats normal