Don't know what a key FOB is. I have a round key that came with bike. I'm pretty sure it's a TSSM coz the key flashes yellow before I screwed it up.
Would the battery light indicator lit up for battery issues? If I have battery issues why would the key turn red?
If you have a round plastic thingy (technical term) on a key ring with the locking Key, then you have a security device & a TSSM.
There are several lights on your Instrument Cluster, (as I see it on my 07 ultra) they are close together but are distinct indicators, if you want to see all the lamps illuminated place your key in the accessory position (if they still have that in 08's) this will force a test mode on the ICM and flash all ICM lamps.
You may also see the RED KEY, this is the security minder lamp, when the bike is parked, and the ignition is off, the system will passive arm then when you & the KEY/FOB are removed from the bike and +30 feet away the alarm system goes into full ARM. Every second or so the red lamp will flash to indicate the armed condition.
Check Engine Light is yellow lamp the illuminates when the key is on and the run switch is in the Run position, while the lamp is on, the ECM is synchronizing/calibrating the servos & sensors, do not twist the throttle while the lamp is yellow, a few seconds later the lamp goes off. You can now press the Starter Button, the lamp may re-illuminate after start to indicate stored/active ECM error codes. eventually it will go out.
The security lamp (RED KEY) might come on to indicate that the alarm system was disturbed while you were away, it also may come on to warn of bulb out conditions.
If there is voltage indicator (Battery Lamp), it's an idiot lamp that would only show only if your alternator was not putting out current/voltage. Chances are your alternator is (working hard to replenish a tired battery).
The other battery is a watch sized unit inside the plastic (Thingy) aka FOB, these go bad after a couple of years. once it craps out completely the chip in the FOB will not send out the signal code to the TSSM receiver on the bike and will not disable to the alarm system, if you tried to move the bike w/o a good FOB in hand or attached to the key ring in the ignition, the alarm will flash your hazard lamps & sound the alarm (if that option was included).
Maybe the sales dude could give you a walk through on the pre-ride checks, pulling your diagnostic codes, etc while testing the BIKE battery & FOB battery.