Blinking Link light has been occuring since firmware 1.0.1.7 I think. I believe it has something to do with the modem responding to ARP traffic which it usually ignores. Its not performance effecting though. The general fix is good old fashion black electric tape. heh
As for the DS light not being blue, you might want to check with your ISP and see if your area is DOCSIS 3.0 capable yet. If its not, no amount of firmware will make that light blue. If it is, then yea, Furry is right.