Marty,
They must be designed to blink. That's two engines now that have the blinking marker lights, and it has to be designed into the board. I think that it was a little trick feature that Lionel added back then. I got sidetracked on my reply to Rich. The Owners Manual didn't specify that the marker lights blinked. However, I found it unusual that they did and looked in the manual how to turn them Off.
Ron