Short of blinding the attacker, you can thwart these attacks in more gentle ways.
In Linux, you can modify the keyboard lights to work as commanded. Tools like LED at http://www.ngolde.de/download/led-src.tar.gz allow you to control the blinking of the keyboard lights after boot. Prior to booting, most BlOSes and even the Linux kernel will use keyboard lights as error codes when the system experiences a critical failure like broken or missing hardware components or a kernel panic.
Finally, you can resort to clipping the wires to the LED, but failing that, black tape, paint, and Tippex (correction fluid) will do the job of shutting down this attack. There is life without flashing lights—honest.
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