Anyone else have this issue? Any resolutions?
I was having this problem on my iPhone 4 jailbroken on 4.0.1. Before I returned it to Apple (for other problems) I updated to 4.2 and set up as a new phone. I still occasionally saw the flash when unlocking so I figured it was a hardware issue. I received my new iPhone 4 this weekend (4.1) and never once saw the problem. Then yesterday I jailbroke with Greenpoison and installed a few jb apps, winterboard, etc. All of a sudden I saw it flash for the first time. So I removed my jb apps, one by one, pressing sleep & slide to unlock repeatedly after each one until it flashed. Everything is now removed except Cydia and it still occasionally does it. Ugh.