I see that this is your first post, so welcome! I'm in New London.
Go to Autozone and have them pull the CEL code (free!). That's your best clue.
Blinking cruise is a byproduct of some CEL situations, not necessarily indicative of anything wrong with cruise control other than it won't let you use it.
My immediate guess, without knowing the CEL code, is that it might have something to do with electricity leakage at the coil or the plug wires. Any visible damage to insulation?
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2003 XS Premium MT - 2005 Impreza 2.5 RS MT
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