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The blinking light usually means one of two things: 1) message box is full or 2) you have a new message. Deleting messages should solve this problem for you. After you delete the messages, if you still have a blinking light, unplug the power cord and take the batteries out of all the phones linked to the base unit. Then one at a time put the batteries back in after you plug the base unit in. This should clear and error. Some base units have a back-up battery, don't forget to remove it too!
The light may be a "new call indication" or "message waiting" indication if you have voicemail service from the phone company. If you clear the caller id log or clear the voice message the light should go out. BUT, it will keep coming back on when a new call arrives! I have a similar phone and I just put a piece of tape that matches the color of the phone over the light.
Often, it is an expired battery that will cause an issue like this. Since a bad battery renders the APC ups useless, it will usually display blinking lights to let you know that something is wrong. The software, if installed, will also help troubleshoot the problem. You find which battery you need from this site: http://batteryinternational.com/ups-batteries-apc-batteries.html
Although you have no messages on your answering machine, there's a chance your phone service has voicemail set up on your line. A call will automatically go to voicemail if you're currently on a call and another incoming call comes in and you fail to answer. Check with your phone line provider to see what options have been put in place on your line. I'm willing to bet you have a voicemail message. The phone will continue to blink as long as there's a message that's been unheard. Greg
You need to run recalibration on the unit. The supplied PowerChute software & cable will allow you to do this if you hook the UPS up to a PC (I know it works with the serial cable, not sure about USB). If you only have a MAC then I cannot offer a solution other than to buy the standalone PowerView device from APC. It will cost a bit more than a battery, but may save you from buying needless batteries in the future. I finally broke down an bought one, but note that I was still having the problem after the 1st recalibration. By trial and error (and maybe a vague memory) I put my MAC in sleep mode, that dropped the load to stop the lights from flashing. Then I recalibrated with a 22% load and now it finally seems better (lights no longer flashing). This was with a Smart-UPS 1000.
Let me know if that helps.