Red light in speaker jack? and screen problem

[insignificantMB]

Sometimes when I am listening to itunes, itunes just freezes and when i pull out my speakers from the jack there is a red led inside the jack? Is that some type of hardware problem?
also..
When I try to force quit itunes, my mbp freezes. Is there some type of control alt delete type thing that i can use?

last thing
I've heard of this problem before, but don't know if there is a fix for it? My monitor will randomly, like once in 2 hours, flash black?

 

[The General]

The red light is because your headphones jack is also an optical audio output.