Optical isolator - as it says on the tin.. Can you reconfigure the 232 port on C4 to do something else (doesn't matter what) to prove it works properly? Might be putting out ***** and killing the panel?
Any recent C4 firmware updates been applied? Try updating panel firmware? Do you have a ground between C4 and panel on 232? Does it still do it when you physically disconnect C4 and set from keypad?
We have 2 or 3 electricians who we work with and they will always put the spurs in for us and test. I actively use the fact we do not install the spurs (as we're not qualified and/or more importantly competent ) and those other firms just chucking in spurs are probably breaking the law.
Those non-electricians who install spurs - do you test the work you've done and do the paperwork etc? Thought not.
Using the same kit by the sounds of it, we are just over £100 dearer and you'd need an electrician to install the spur on top of that and then there's VAT. It's a very good price (depending where you are in the UK and even more if that price includes VAT) as long as they install it properly.