Water in Fuel light

[Urnie-Medie]

The dash light on my 2001 LXi shows water in the fuel. I have drained the separator several times. A few questions.

1- Should the engine be running or off while draining? I have tried both ways.
2- How long should you let it drain?
3- The alarm for water in the fuel over the door does not go on - are these alarms connected or is one if the problem is more critical?
4- Is there a fuel additive that will remove the water?

Any other suggestions.

Thanks

Urnie