Why is my Digistat SCR Recieve / Alarm light lit red along with the green on light above it

No idea! If all else fails, read the book of words which came with it.

Remember if posting via this rubbish interface to usernet most of your audience will only see a picture if you uplooad it to a space like dropbox and paste in the link. Brian

Isn't that the way it's meant to work?

Red light: timer has enabled the boiler to switch on. Green light: thermostat says give me some heat. (or the functions associated with the lights is reversed) When they are both on the boiler fires up.

Other than that you would have to give us a lot more information about why you think the above is incorrect or read the manual which can be found on-line.

I suspect this post is a bit pointless as the OP posted from home users hub and probably will not see any replies until his posts re-surface in