My nikon 50mm f/1.8 lense won't work on my nikon D80?

I have a Nikon d80, and I just bought a lense which is a Nikon 50mm f/1.8 and the only time it works on auto is if it's at f/22, but when I put it in manual or portrait I still can't change the f stop to 1.8. And when I do my camera flashed a fEE on the top of the body. How can I fix it? I bought this lense because of the f/1.8 but I can't even use it.

That is exactly how the AF-D lens is supposed to work. Keep the aperture ring set to f22 to allow it to electronically communicate with the DSLR. The other aperture ring settings will tell the camera's electronics that it is set to the wrong position.
The usefulness of the other settings on the aperture ring are to work with some older film cameras that lack electronic control of aperture, and also if used on a non-Nikon camera with adapter that will lack electronic communication.