yeah it flashes. like everything else, I wipe cache and dalvik before, not sure if its necessary but hey why not. He is right it will sometimes replace mods you have like battery icons and such, you can actually tell if you open it and look in the system/app folder. On cm7 im not sure if it will change your status bar but have you tried dling a theme from the market and changing to it in theme chooser? Does that change whether it says sprint up there or not?
CM7 also has that app called torch, its your flashlight now. It can also strobe. You can change the setting to make it use both by going into CM setting i think, notification bar, flashlight settings and turn it up to death ray. Not sure that is the exact path but look around, its in their somewhere. Its wherever you change what is on your notification bar, like what sound profiles it will cycle, what data profiles it will cycle...