If you do this registry edit, it turns off all led's except the charging led.
Unfortunately it will also disable vibrate, which in my case I don't care about so it doesn't matter.
HKLM/drivers/builtin/allledmgr/ "dword:index" Value should be 1 for LEDs and vibration on Value 0 turns them off.
I hate those blinking lights, that's the first hack I do.
If you don't know how to do registry edits or just want a fast way to enable/disable hacks, download the Famous TrianglePowers PPC-6800 Hacks.
Everything works for the Touch also, it's a great little program that does a bunch of different reg hacks by just checking and unchecking a box.
You have to register, but it's well worth it, these guys are Great, they have some other good stuff too. Check it out.
http://www.trianglepowers.com/PPC/ViewApp.aspx?ID=54