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The amber light is to warn of emmisions failures/faults and is not fatal to the engine. Mine comes on occasionally when de-celerating at speed, and I think it is because of overfuelling. You may find come MOT time that it will fail the emmisions test. Don't worry about it till then if everything else soumds good.
Yup, mine was flashing intermittently recently and has actually been the worst fault on my car, however i do know of people whose lights flashed up for a while then not happened again. you may find its something wrong somewhere and sticking it on the diagnostics clears it.
this is just one of the endless faults ive incurred but i did change the coils and then found out it was the head gasket so replaced that, now the car works im getting a new one it may not be the same as mine so i wouldnt worry that you need a new car