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Version is irelevant with this problem.
The blink is caused by something you have running in the back grouns, Maybe E-mail set to check for new messages every 5mins?
 
Well I include messanger under the general E-mail banner. E-mail messanger, newsgroup, Auto update Music Match, ...
 
YOu may also want to run an ADware/Spyware check.

The exit problem may have been solved when you renamed the AVI folder, this will at least cut down the frequency.