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The fact if unplugged etc and tries to function means a micro related problem---if unplugging all units for a while does not change this then suspect a power supply or main board (controls all functions).
I unpluged mine and the light was still blinking when it was unpluged. I thought that was weird. So I pluged it back in and just heald the power button in untill the light went out. It went out within ten seconds. I pushed the power button again and the tv went on. WOOHOO!!! Just needed reset, I guess.
I had the same problem and fixed with a great online tutorial. Just replace 3 capacitors available at Radioshack onthe the board. 2662, 2663, 2664 1 is a 1000uf the others are 100uf. Max Volts need to be over 25. It worked great, check http://dynamicorange.com/2008/06/25/fixing-a-plasma-tv/
for more detail.
It is most likely a power supply failure and if there had been no signs of problems in the video display, it is probably the main power supply rather than one dedicated to the plasma display itself.
You might leave it unplugged overnight to give any stored charge inside the unit a chance to bleed off, the remove the back panel.
The primary supply is normally on a separate board and is characterized by having mostly larger components, including one or more transformers with black ferrite cores.
The main supply will be associated closer to the AC input while the high voltage supply which may or may not be separate is not.
If you can locate the board with some confidence, check it visually for any signs of heat such as discoloration of board or components.
If it seems OK it may be a candidate for exchange or repair by Philips.
I wouldn't advise removing and sending it before you talk to Philips to see if this is a familiar problem to them.
My phillips 42" is the same way. Just started popping up the settings menu the other day and wouldn't stop popping up until I downloaded the software upgrade from the Phillips web site. But now, two days later it won't do anything but give that same annoying red blinking light. The customer service says to take it to an authorized repair center. sounds like they have a ton of these calls everyday. The solution is to buy it from Costco, and make sure you return it and get a new one before their return policy expires.