Start each line with a colon.
And take the E out of lighton in the constant state.
Your second colons are misplaced as well.
Lighton, lightoff, and timerstart are Actions not Conditions.
Here's your code re-written as suggested.
:plrwithinzone:lighton,timerstart,state=1
:state=1,plrwithinzone,timergreater=500:lightoff,timerstart,state=2
:state=2,plrwithinzone,timergreater=500:lighton,timerstart,state=1
But I think it still has a logical error, because of the first line.
Try this instead...
Just don't forget to set the Light's STATIC MODE to NO.
:state=0:timerstart,state=1
:state=1,plrwithinzone=0:lighton
:state=1,plrwithinzone=1,timergreater=500:lightoff,timerstart,state=2
:state=2,plrwithinzone=0:state=1
:state=2,plrwithinzone=1,timergreater=500:lighton,timerstart,state=1
Now when they stand in the zone it should flash and when they step back out it stays on.
Some people suggest using plrdistwithin=x instead of plrwithinzone=x
It a matter of personal preference since it is still checking for the condition.
They are both conditions for the state to check.
I have had no problems using plrwithinzone=x