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If the sensor is "clicking" and the light is blinking, it would seem that the sensor is working properly. The clicking is most likely the sound of the relay closing, which should then be passing the current further down the circuit to the lights/fan. Unless the relay was not making sufficient contact, I can't say why the sensor wouldn't be working. I would test the Load wire coming off the sensor with a voltmeter to see if you get ~115VAC coming when the sensor is switched ON.
If you believe your sensor is faulty, please submit a claim on its 5-year warranty at www.leviton.com/qualityconcerns, or by calling us directly at 800.824.3005.