I'm having the same problem with flashing (see my youtube video at
http://www.youtube.com/watch?v=u-dQIgfIFsI), which I also believe is related to my problem of the Macbook not behaving in clamshell (lid closed) mode. In clamshell mode, the Macbook would power up then go right back to sleep.
At first, I thought it was due to my Crucial 2x2GB chips, as putting back the stock Apple 2x1GB chips seemed to resolve the problem. Returned the RAM and am waiting for replacement. However today, again I had difficulty getting the Macbook into clamshell mode, but it eventually did. Worked for about 1 hr with no problems, UNTIL I fired up iTunes. Then, while in clamshell mode, my external monitor started flashing. This bug really *****, and I hope it's fixable via software, because I'd hate to do the migration thing over again.