Hmm... just getting back to this thread.
It seems like the blinking LED is a minor annoyance, then? It still seems, from your description of the symptoms, that the driver may be using the LED as a throughput indicator. Is it blinking steadily, or does the pace of blinking correlate with periods of network activity (e.g., send/receive)?
If it's blinking steadily at a more or less constant rate, then I'm wrong. In any case, until the issue with the driver is sorted out, this will continue to be a problem. Maybe a bit of black tape over the LED? (I'm only half-kidding here... it may be the cheapest way around the problem.)
Here's an idea: Open the PCLinuxOS Control Center, click on Hardware on the menu at left, then click on Browse And Configure Hardware and navigate to your Wifi adapter. (It'll be listed under Ethernetcard). The Identification section displayed at the top will give the particulars of how the system identifies your card. Perhaps it has been misidentified? In the Misc section a listing will be given for module. Mine says "wl". I'm thinking that's a kernel module supporting wireless LAN cards in general? (I could be wrong, though.)
Basically, let's try to gather some more info on this situation. I gotta get ready for work, so I'll check back...