Wooohooo, the mystery is solved. I changed the autorun value in the registry and no more blinking lite
BTW, I don't have DirectCD installed...or any Roxio crap for that matter.
Now that I know what was happening, I can sleep better at nite. hehehe j/k
But I went back and enabled the auto run, I think the little annoyance of that lite flashing isn't as bad as not having cd's auto run.
Thanks everyone for your replies and suggestions.