The lights flash for a couple minutes when there is a fault detected somewhere in the system. It's the a/c equivalent of the Check Engine light: very nonspecific. If it's persistent, it's usually related to low refrigerant. The squeal, if it's related, might indicate a compressor or belt problem...hence low compression hence the fault detection. But I'm not an a/c expert. If you have 70K on the car or more you should have your timing belt and accessory (serpentine) belt replaced.
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(98 S70 T5SE misc mods, mostly lighting) (92 940GLE)
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