I have the same problem on an Indesit wil103.  My machine is only about 3 years old. 
I tried all the suggestions of unplugging it and leaving it before starting it again after 3 hours.  I also tried to reset the programme, using the on/off switch and the programme dial.
I have found other sites with several ideas for this machine.
I have left it for a week and then tried it and it started as normal today but shortly after the same flashing lights began again. 
After spending a week reading lots of similar posts on the Internet I have resigned myself to buying a new one (not an Indesit, maybe a Bosch).  Some posts say it is the pressure sensor some that the fault is the main control panel (mainboard?) which is £200 to replace!
                
 LallyF
                
 April 2009