Kenmore HE2 flashing lights

I have a kenmore he2 and the lights are flashing. I have had this machine for 14 months. called Sears and it is going to cost me 400 dollars. Any suggestion about to fix this machine. Any guidance or directions will be much appreciated. Kenmore HE2 110.46462501 stopped in the cycle with some of the status lights lit, lights around the cycle ring flashing. Restart on 'drain and spin" cycle, pump runs for a period then tops with Status lights 'add garment', 'rinse', and 'add garment' lit. The 'wash', 'spin', 'controls locked' and 'door locked' are not lit.  Cleaned out the pump trap as per suggestion. Found a lot of stuff - change, nails, construction screws and a small gold chain. Removed the pump and checked teh impeller for damage, obstructions. There was also a fair bit of goo in the bellows with the float ball, which I cleaned out. I primed the system with about a gallon of water, then ran 'spin and drain' cycle. Cycle starts by pumping out all the water. The pump then runs (mostly) dry pulsing the remaining water in the drain line, and then ends in the flashing light state. Other cycles behave same. Pump runs, no water is added, and ends in flashing light state. Seems like system senses water in the tank, and tries to pump dry. Failing to detect empty state, it gives up. Any  next step suggestions please? --RRLee