Val,
Not an owner of this washer but you should check the user's manual that came with it, as it should tell you what the flashing light would be caused by.
I'd make sure that the lint collector at the bottom of the machine is cleared, as this may be preventing the draining.
I'd guess that there might be a fault in the circuit for the buttons controlling the hold/drain and no-spin/spin.
Sean, April 2010