Just wanted to post this here for those using 14.10 or 15.04 and so on.

Download the pre-built deb from here
https://launchpad.net/~mdeslaur/+archive/ubuntu/steamos/+files/steamos-
xpad-dkms_0.3-0md0.14.04.2_all.deb

sudo dpkg -i steamos-xpad-dkms_0.3-0md0.14.04.2_all.deb

Reboot, re-link controller, switch off controller, switch it back on,
and the light no longer blinks. These are the steps I took running
Kubuntu 14.10.

I have noticed that the light continues to blink straight after linking,
the power toggle of the controller fixed the light blinking.

I hope this info helps :) Peace out and game hard

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https://bugs.launchpad.net/bugs/1272765

Title:
  Xbox 360 wireless controller light continues blinking after sync with
  receiver

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