Mazda Protegy 1992 transmission problem

The light flashing is the transmission controller indicating to you that it's detected a fault in the transmission. This doesn't mean that you need an transmission overhaul, it does maen that the controller has detected a fault and has stored data and trouble codes which a mechanic could access with a scanner. The reason the car feels sluggish and doesn't shift right is that the trans controller has gone to a 'default' mode to run the transmisson and reduce the chance of damage to the transmission. You need to see a transmisson shop or a Mazda specialist. Here's a directory link for you: http://repairpal.com/mazda-repair-in-santa-ana-california