Thanks, but in this case I was using the camera (via Skype video chat) and it's very hard to find any info of users experiencing this scenario -- barely anything on google or forums. so if anyone has anymore info, I'd appreciate it. I don't want to return the computer for no reason (still under time frame for a return) ie if this is expected to occur here and there when on a Skype call.
If the flashing green indicator light does not prevent quality video connections, I don't think anything is wrong.
However, if you want to try to stop the flashing, use the suggestions in http://support.apple.com/kb/HT2090 to verify whether this is a Skype only problem not related only to your normal user account.
If the flashing also occurs when using Apple software, contact Apple for service on your Mac.
If yours is a Skype only problem, if the problem continues after you restart your Mac, reinstall the latest Skype version that is compatible with your Mac OS.
If that does not help, Skype's comprehensive support system should best be able to help you use their product with your system.
Start here: https://support.skype.com/
You can also search or post for help with your problem in Skype's dedicated Skype Discussions for Mac. The Skype users who post there may have already solved the same problem.
If nothing else works, you can even sign in and ask for email help directly from Skype's Technical Support people.