Ok, so iv found this room with 4 insignias, two on the wall, 2 on the floor all glowing red. Theres a chest near the center of the room, seems to be magically sealed.

Whats the trick here ?

You need to deactivate the seals in a specific order. I just did it by a trial-and-error method and succeeded.

Iv tryed this several times. Sometimes upon deactivating the last one, ill get hit by fire , struck by lighting or just take damage. Do you have to have certain magic signs selected while doing this ?

http://gaming.stackexchange.com/questions/22784/gargoyle-contract-solution-to-the-sign-order-puzzle

This might help to nudge you along.

Look around to see if anyone has information about these runes.

Do some reading (in game), and pay attention to clues in the room.