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Can you unplug some other USB devices? It could perhaps, as someone suggested, be a shortage of power to the GPS unit...who knows...
Unfortuantely, it seems like it just may be defective. I remember my GPS blinking (receiving satellite comm.) even when I didn't have it configured correctly on the software side.
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CarPC #3: 99% CompletePentium M 1.7Ghz, 1GB DDR2 RAM
DVD/CD-RW installed in dash below monitor
OEM LCD relocated for 7" Touchscreen
Wi-Fi, GPS, PS2 controllers...
500+ full albums
4,000+ video games
music videos, movies, & more! old carPC
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