The Lemon flashing red means it is in bind mode - I'd remove the bind plug first if the Devo is already bound to it (http://www.micronradiocontrol.co.uk/..._RX_manual.pdf), no need to be in there once it is bound.

I notice on the ESC that the middle light is flickering - does any of the documentation that came with the ESC state what those LEDs are for?