Comment 16 for bug 188732

It is unfortunate that the upstream developers chose to deal with this matter in the manner in which they have done.

I will assume by Pedro's comment that all is now in hand, but in case it helps here is a reversal of the offending patch against 8.04's sources:
http://www.jcornwall.me.uk/patches/gnome/gnome-terminal-2.22.1-reverseblink.patch

For users wishing to restore blink functionality before the next milestone, apply like this:

apt-get source gnome-terminal
cd gnome-terminal-2.22.1
patch -p0 < /path/to/gnome-terminal-2.22.1-reverseblink.patch
dpkg-buildpackage -rfakeroot (from package dpkg-dev for this)
sudo cp debian/tmp/usr/bin/* /usr/bin
sudo cp debian/tmp/etc/gconf/schemas/* /etc/gconf/schemas
sudo cp debian/tmp/usr/share/gnome-terminal/glade/* /usr/share/gnome-terminal/glade

(You will need to use another terminal, like xterm, to overwrite the gnome-terminal binary. I'd advise against installing the whole built .dpkg file as it will conflict with the apt repository.)