The car should not be running when checking codes (the key is in the "on" position, but you don't actually start the car). Check the codes as outlined in the FAQ and post back here.
Yes, there is a possibility it could be flooded (although unlikely).
If the car has sat for over an hour since you last tried starting it, you could go and try again. If it starts, then great. However, you should still check the codes because if the light is on, then there is a problem that should be addressed and any other troubleshooting would be pointless without knowing what the computer is trying to tell you.
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1989 7MGTE R154 Targa Top White Package w/Blue Interior
Driftmotion 57trim CT26, Upgraded Intercooler, 2.25" Hard Pipes, 3" Turbo Back Exhaust with Test Pipe, HKS VPC w/GM 3 bar MAP sensor, APEXi S-AFC, Walbro 255lph fuel pump, ProSport EVO Series Boost / Fuel Pressure / AFR gauges, Lotek a Pillar Gauge Pod, HKS Type 0 Turbo Timer, Eibach Lowering Springs, Tokico Illumina II TEMS struts, custom powder coated Motegi Racing TrakLite wheels
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