At 12v and an LED with forward voltage of 2v nominal and nominal current of 20ma, a resistor of 500 ohms would be necessary, but i would drive it at less than 20ma so maybe 750 ohms or something like that as the life of the LED goes up sharply with lower than full rated current.
Yes a good idea with the blinking LED. An LED running at 10ma always draws 10ma from the supply (battery), but an LED at 10ma that blinks with a 50 percent duty cycle only draws 5ma average from the battery, and at 10 percent duty cycle it only draws 1ma average. I used this idea with a refrigerator monitor to reduce battery current draw and get the batteries to last for 2 years, so it make a BIG difference. They make blinking LEDs already but im not sure if you can get that low of a duty cycle from one of those.