I have 2 of these recorders, both developed same fault within days of each other, they were actually brought within days of each other too so I found it ironic that they went with same faults in the same week.
However after searching the web for months and not finding an answer I had a play about with the power board.
Next to a transistor mounted on a heat sink there are 3 capacitors, 2 x 2200uf. 16v and 1 x 1000uf. 16v.
One of these cans ( larger ones, 2200uf ) looked slightly raised more than the other so I removed a capacitor from an other machine I had in the loft ( different make ) and soldered it onto the power board after removing the raised can.
After replacing all the wired connections back into place and switching the unit on, the blue light only problem was solved and machine works as normal with the exception that the lcd display is very dim, so dim you can hardly see it. However once connected to a tv the recorder works perfect and you can use the onscreen displays.
This was the exact same problem on both my wharfdale machines so hopefully you can solve your problem in the same way. Maplins sell the capacitors for 89pence (VH54J)
Hope this helps.
Paul. Castle Vale, Birmingham, April 2011