This message was posted on behalf of Intel Corporation
According to Technical Product Specification (TPS) the flashing blue light indicates the system is in process of booting. However, in some cases when it hangs on and does not continue to boot it is typically when previously used hard disk drives are used in the Intel® Entry Storage System SS4200-E. Thus, any previously used disk drives (HDD’s) are likely to have a Master Boot Record (MBR) boot sector residing on the disk.
It is important to make sure the drives contain no data and are clean of any boot sectors. You could confirm with the drive manufacturer for utilities to remove existing data from the hard disk drives.
Please refer to http://www.intel.com/content/www/us/en/support/server-products/server-systems/000007738.html for more information.
Additionally, take into consideration that there is additional support information and firmware for the Intel® Entry Storage System SS4200-E at http://www.intel.com/content/www/us/en/support/server-products/server-systems/4u-pedestal-rackable-server-systems/intel-entry-storage-system-ss4000-family/intel-entry-storage-system-ss4200-e.html
If you have any more questions, please let me know.