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It sounds like your rechargeable battery is dead, I would take the camera with the charger to a camera store have them quickly check the battery with a meter before you commit to buy a new one, this way there is no guess work and you are not wasting money.
I have the same problem with my 770 SW. The funny thing is, some outlets in my house will allow it to charge, some will just make the light flash. I found your question looking for a better solution. Try all the outlets in your house with the charger, I know it sounds silly, but it works for me.
Before you get creative and directly plug your batter into an AC adapter, try something much easier first. I have the same problem with my Olympus 770SW batteries. As silly as it sounds, the charger will only work in a select few outlets in my house that I found by trial an error, actually pure frustration. I suggest, go around your house and plug the blinking charger in all the outlets and see if you find one that works. That sounds a lot less shocking than solution 1 and 2 now doesn't it? Good luck!
I know this sounds like a no-brainer, but do you have the battery installed in the camera? Also, plug the camera into the charger until it is completely charged. It is completely charged when the blue LED on the dock stops flashing. Or, if you are charging it by AC adapter, just keep it plugged until the blue LED on the camera stops flashing.