diff -urN a/Documentation/kernel-parameters.txt b/Documentation/kernel-parameters.txt
--- a/Documentation/kernel-parameters.txt	2010-02-25 03:52:17.000000000 +0900
+++ b/Documentation/kernel-parameters.txt	2010-04-10 12:24:29.000000000 +0900
@@ -899,9 +899,6 @@
 			     controller
 	i8042.nopnp	[HW] Don't use ACPIPnP / PnPBIOS to discover KBD/AUX
 			     controllers
-	i8042.panicblink=
-			[HW] Frequency with which keyboard LEDs should blink
-			     when kernel panics (default is 0.5 sec)
 	i8042.reset	[HW] Reset the controller during init and cleanup
 	i8042.unlock	[HW] Unlock (ignore) the keylock
 
@@ -1824,6 +1821,9 @@
 
 	panic=		[KNL] Kernel behaviour on panic
 			Format: <timeout>
+	panicblink=	[KNL] The speed of panic blink (range is 1 to 100, the
+			lower the slower, the higher the faster, default is 12)
+			Should be 5 or less when running under a hypervisor
 
 	parkbd.port=	[HW] Parallel port number the keyboard adapter is
 			connected to, default is 0.
diff -urN a/arch/arm/mach-s3c2442/mach-gta02.c b/arch/arm/mach-s3c2442/mach-gta02.c
--- a/arch/arm/mach-s3c2442/mach-gta02.c	2010-02-25 03:52:17.000000000 +0900
+++ b/arch/arm/mach-s3c2442/mach-gta02.c	2010-04-10 12:24:29.000000000 +0900
@@ -90,24 +90,17 @@
 static struct pcf50633 *gta02_pcf;
 
 /*
- * This gets called every 1ms when we paniced.
+ * This gets called frequently when we paniced.
  */
 
-static long gta02_panic_blink(long count)
+static long gta02_panic_blink(int state)
 {
 	long delay = 0;
-	static long last_blink;
-	static char led;
+	char led;
 
-	/* Fast blink: 200ms period. */
-	if (count - last_blink < 100)
-		return 0;
-
-	led ^= 1;
+	led = (state) ? 1 : 0;
 	gpio_direction_output(GTA02_GPIO_AUX_LED, led);
 
-	last_blink = count;
-
 	return delay;
 }
 
@@ -614,7 +607,7 @@
 
 static void __init gta02_machine_init(void)
 {
-	/* Set the panic callback to make AUX LED blink at ~5Hz. */
+	/* Set the panic callback to turn AUX LED on or off. */
 	panic_blink = gta02_panic_blink;
 
 	s3c_pm_init();
diff -urN a/drivers/input/serio/i8042.c b/drivers/input/serio/i8042.c
--- a/drivers/input/serio/i8042.c	2010-02-25 03:52:17.000000000 +0900
+++ b/drivers/input/serio/i8042.c	2010-04-10 12:24:29.000000000 +0900
@@ -60,10 +60,6 @@
 module_param_named(noloop, i8042_noloop, bool, 0);
 MODULE_PARM_DESC(noloop, "Disable the AUX Loopback command while probing for the AUX port");
 
-static unsigned int i8042_blink_frequency = 500;
-module_param_named(panicblink, i8042_blink_frequency, uint, 0600);
-MODULE_PARM_DESC(panicblink, "Frequency with which keyboard LEDs should blink when kernel panics");
-
 #ifdef CONFIG_X86
 static bool i8042_dritek;
 module_param_named(dritek, i8042_dritek, bool, 0);
@@ -1031,8 +1027,8 @@
 
 
 /*
- * i8042_panic_blink() will flash the keyboard LEDs and is called when
- * kernel panics. Flashing LEDs is useful for users running X who may
+ * i8042_panic_blink() will turn the keyboard LEDs on or off and is called
+ * when kernel panics. Flashing LEDs is useful for users running X who may
  * not see the console and will help distingushing panics from "real"
  * lockups.
  *
@@ -1042,22 +1038,12 @@
 
 #define DELAY do { mdelay(1); if (++delay > 10) return delay; } while(0)
 
-static long i8042_panic_blink(long count)
+static long i8042_panic_blink(int state)
 {
 	long delay = 0;
-	static long last_blink;
-	static char led;
-
-	/*
-	 * We expect frequency to be about 1/2s. KDB uses about 1s.
-	 * Make sure they are different.
-	 */
-	if (!i8042_blink_frequency)
-		return 0;
-	if (count - last_blink < i8042_blink_frequency)
-		return 0;
+	char led;
 
-	led ^= 0x01 | 0x04;
+	led = (state) ? 0x01 | 0x04 : 0;
 	while (i8042_read_status() & I8042_STR_IBF)
 		DELAY;
 	dbg("%02x -> i8042 (panic blink)", 0xed);
@@ -1070,7 +1056,6 @@
 	dbg("%02x -> i8042 (panic blink)", led);
 	i8042_write_data(led);
 	DELAY;
-	last_blink = count;
 	return delay;
 }
 
diff -urN a/include/linux/kernel.h b/include/linux/kernel.h
--- a/include/linux/kernel.h	2010-02-25 03:52:17.000000000 +0900
+++ b/include/linux/kernel.h	2010-04-10 12:24:29.000000000 +0900
@@ -159,7 +159,7 @@
 #endif
 
 extern struct atomic_notifier_head panic_notifier_list;
-extern long (*panic_blink)(long time);
+extern long (*panic_blink)(int state);
 NORET_TYPE void panic(const char * fmt, ...)
 	__attribute__ ((NORET_AND format (printf, 1, 2))) __cold;
 extern void oops_enter(void);
diff -urN a/kernel/panic.c b/kernel/panic.c
--- a/kernel/panic.c	2010-02-25 03:52:17.000000000 +0900
+++ b/kernel/panic.c	2010-04-10 12:24:29.000000000 +0900
@@ -31,20 +31,45 @@
 static DEFINE_SPINLOCK(pause_on_oops_lock);
 
 int panic_timeout;
+static int panic_blink_wpm = 12;
 
 ATOMIC_NOTIFIER_HEAD(panic_notifier_list);
 
 EXPORT_SYMBOL(panic_notifier_list);
 
-static long no_blink(long time)
+static long no_blink(int state)
 {
 	return 0;
 }
 
 /* Returns how long it waited in ms */
-long (*panic_blink)(long time);
+long (*panic_blink)(int state);
 EXPORT_SYMBOL(panic_blink);
 
+static long panic_blink_enter(long count)
+{
+	int len;
+	long delay = 0;
+	static int state = 1;
+	static int first = 1;
+	static long next_count;
+
+	len = 3600 / panic_blink_wpm;
+	if (!first && count - next_count < 0)
+		return 0;
+	if (state) {
+		delay += panic_blink(0);
+		state = 0;
+		if (first)
+			first = 0;
+	} else {
+		delay += panic_blink(1);
+		state = 1;
+	}
+	next_count = count + len;
+	return delay;
+}
+
 /**
  *	panic - halt the system
  *	@fmt: The text string to print
@@ -58,6 +83,7 @@
 	static char buf[1024];
 	va_list args;
 	long i;
+	int step;
 
 	/*
 	 * It's possible to come here directly from a panic-assertion and
@@ -95,9 +121,22 @@
 
 	bust_spinlocks(0);
 
+	panic_blink_wpm = clamp(panic_blink_wpm, 1, 100);
+
 	if (!panic_blink)
 		panic_blink = no_blink;
 
+	/*
+	 * When running under a hypervisor a small mdelay may get
+	 * rounded up to the hypervisor timeslice. For example, with
+	 * a 1ms in 10ms hypervisor timeslice we might inflate a
+	 * mdelay(1) loop by 10x.
+	 *
+	 * If panic_blink_wpm is 5 or less, spin on 240 millisecond
+	 * calls to mdelay to avoid this.
+	 */
+	step = (panic_blink_wpm <= 5) ? 240 : 1;
+
 	if (panic_timeout > 0) {
 		/*
 		 * Delay timeout seconds before rebooting the machine.
@@ -105,11 +144,10 @@
 		 */
 		printk(KERN_EMERG "Rebooting in %d seconds..", panic_timeout);
 
-		for (i = 0; i < panic_timeout*1000; ) {
+		for (i = 0; i < panic_timeout * 1000; i += step) {
 			touch_nmi_watchdog();
-			i += panic_blink(i);
-			mdelay(1);
-			i++;
+			i += panic_blink_enter(i);
+			mdelay(step);
 		}
 		/*
 		 * This will not be a clean reboot, with everything
@@ -135,11 +173,10 @@
 	}
 #endif
 	local_irq_enable();
-	for (i = 0; ; ) {
+	for (i = 0; ; i += step) {
 		touch_softlockup_watchdog();
-		i += panic_blink(i);
-		mdelay(1);
-		i++;
+		i += panic_blink_enter(i);
+		mdelay(step);
 	}
 }
 
@@ -404,4 +441,5 @@
 #endif
 
 core_param(panic, panic_timeout, int, 0644);
+core_param(panicblink, panic_blink_wpm, int, 0644);
 core_param(pause_on_oops, pause_on_oops, int, 0644);