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I just yanked one of these Karr alarm and keyless entry units out of my E - the previous owner had installed it and I hated it - the key fob was terrible...rather than having separate lock and unlock buttons like the OEM Honda key fob, the Karr one just had one button - push it once and it locks and push it again and it unlocks...problem was I was never totally sure it was actually locked without visually checking, vs. the OEM keyless entry that you clearly know what button you are pushing and if you want to be sure it's locked, just push it twice and the horn beeps.

As for the original post r.e. how to tell if the alarm portion is working, just lock the car with the key fob with yourself inside and then open the door manually and the alarm should go off.

I finally grew fed up with the cheesy Karr alarm/keyless entry and ordered the OEM keyless entry from H and A. It was super easy to remove the Karr stuff - as noted above, all the wires were spliced in with little couplers - I just followed all the wires and unhooked them. The thing came out with a couple of modules and a little black box with a LED on it. I promptly tossed it and the key fob in the trash where it belonged. The OEM keyless entry couldn't have been simpler to install (instructions on H and A website) and the OEM key fobs were easy to program. I'm much happier now and really enjoyed seeing all that crap removed from my car. The OEM alarm is also available from H and A - not really something I need where I live but it looks equally simple to install.
 

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I'm not 100% sure what features the Karr alarm had - it definitely would honk if a door was opened but when I yanked the guts out, one fo the boxes looked like it was some sort of motion sensor as well...i.e. bump the car and it goes off. If you already have the OEM keyless entry and you end up removing the Karr alarm, you can add the OEM alarm as well fairly easily and it looks to be a full-feature alarm. HandA has it for ~$160. Details on the alarm and installation instructions here:

http://www.handa-accessories.com/elementelect.html
 
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