Pretty sure that means that the 4WD is in the process of engaging. Blinks for a few seconds then stays on.
Mine sometimes blinks while in 2WD whether I'm using 4WD or not. Research on Internet suggests it's fairly common problem and probably due to misaligned sensor. Since I've tested my 4WD/2WD (on ice) to see whether it was going in and out of 4WD correctly I placed window tint plastic over light so it would stop buggin' me...;)
Sometimes may take a few miles of driving for it to go out. Usually after some starts and stops. Sometimes shifting into and driving in reverse a little bit does it too.
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