Both lights on means that there is a problem with the system. I am not sure if it is linked only to the struts, though.
Most have replaced their struts with Monroe Sensa-tracs with ELC (Electronic Leveling Control) so the leveling system is still functional. The CCR (Computer Command Ride) will only be functional with original equipment struts and are very expensive (if you can find them) new, and may be difficult to find from a junkyard. You can do a search on CCR or ELC to see past topics. Also can check in "Techinfo" at the top of the club website.
The leveling system uses the same compressor (located under the rear passenger side of the car behind the passenger -side rear wheel. One way to test the system is to start the car, open the trunk and sit on the edge of the trunk. After about 35 seconds (I think) you should hear the compressor kick on and the back of the car will begin to rise.
The inflator is a slow fill/high pressure type. There is no storage of air. For '97, the key must be in the "on" position or running, then depressing the button, will direct air though the valve. Remember, there is no "filling" of any tank for the inflator. It is a direct release of air from the compressor to the valve while the key is on or the car is running.