Same problem here -- blue power and amber record LEDs flashing on powerup.
Looked and sounded like a power supply problem, so I opened it up and noticed the bulging caps (C7, C8, C10).
Replaced with parts from RadioShack: C7 and C8 with 1000µF 35VDC, and
C10 with a pair of caps in parallel: 1000µF and 220µF 35VDC...I had to
enlarge the hole in the PCB with a 1/16" drill bit to get both sets of
leads through (drill from the copper side, and be careful!).
All systems go.
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