I just tested out Disco Light and it seems to work. Looks like it has a lot of options too. I do have the leaked gingerbread though, not sure if it makes a difference. Disco Strobe doesnt show up in the market for the Thunderbolt.
I was always wondering if apps like this wears down the LED or screen because they are not designed to flash like that constantly... Has anyone heard of any issues with screen or LED using this type of app?