You can drive around with it disconnected, but the problem may be the siren under the windshield plastic cowl or any of the switches that set off the alarm. Did the siren sound loud when you pushed and held the red panic button on your FOB before the current problem or was it weak? If not really load, then you should disconnect the siren which is located under the black plastic cowl below the windshield. The red flashing light on the tow alarm indicates the anti-theft alarm is set. Why was it set? Do you have a coupe or a roadster?

Does the FOB lock and unlock the doors with your current setup with the anti theft alarm disconnected?
PS. I just read one of your previous posts where you removed the chip from your FOB and attached it to your key ring. Might there be a connection with this problem?