I can confirm this workaround works, thanks for the link, MGMainz.

Either open gconf-editor and navigate to apps -> gnome-power-manager -> 
backlight and set "enable" to false (uncheck) or paste the following into a 
terminal:
gconftool-2 --set "/apps/gnome-power-manager/backlight/enable" --type bool 
"false"

After a reboot (or a restart of gnome-power-manager) the problem is
gone.

-- 
[Gutsy] Screen constantly flashing while g-p-m is running
https://bugs.launchpad.net/bugs/145131
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