I noticed a theme that I used sets !ToggleFlashing to flash the scroll lock light when a window in the task bar also flashes. I am wondering if this is something that is done only through LiteStep, or if it modifies a registry value somewhere (or another windows configuration.) Some of my friends who don't wish to use LiteStep would like to use this feature, so I would appreciate knowing more about how this option works.

Theres's a module called Toggle, which might be triggered by a module that has a flash event, or I think one of the task modules has this built in. It can be done outside of litestep, but you need a hook to get the window flashing notification.