What do you mean "Blacking Out"?
Where is the leakage? When you hold the phone upright, do you see the leakage when looking down on it (leaking above the buttons), or upward (leaking on the bottom edge where the screen meets the bezel)?

 

1) That's normal. Annoying, but completely normal and is that way for every single one on the market. Light leakage is when light is coming out from the bottom of the phone. The ability to see the light from the button LEDs through the screen when looking down on them is normal, so don't sweat it

2) That's strange, does it do that WHILE you are using the phone? When does it happen? The power button does nothing until you first pull the battery?