Same Problem I also experienced this problem with my 2008 Impreza 2.5i today driving 45-50mph. Out of no where my CEL, VDC turned on and Cruise control started blinking. Ive heard that whenever you get a CEL (in a newer Subaru atleast) the car disables VDC and Cruise Control, but I am not entirely sure how accurate that is.

Cruise control will always disable itself when any CEL light is present, so that's normal. The Stabilitrak light problem is a known common problem with these. Your steering wheel position sensor needs to be replaced. Mine does it every morning IF my steering wheel wasn't put into a straight position when I parked it. Straighten the tires, turn the ignition off and restart. Light will go out.

From what I have read the flashing cruse light is to get you to fix the problem. Any cel will throw the cruse light and cruse will not work. Get your abs checked out and cruse will work again when fixed.

no year stated, wow.
the first checks are not the CRUISE.
they are:
1: all fuses good.
2: CEL lamp out driving, if not the PCM will in fact cut Cruise function ( preventing TOYOTA SYNDROME)
3: scan tool do a full PCM scan, got errors. got DTCs, bingo.

today cruise is the last to work, (a very serious safety issue)

You'll have to figureout if it is a fuel or ignition problem.What are the trouble codes ?

This happened to me when I forgot to change my engine oil when it was due for an oil change. After I changed my engine oil, it took about 200 miles for the Engine light and flashing cruise control to turn off.

The "VDC Disabled" means that your Antilock brakes and traction control system has been disabled due to a malfunction, The Cruise Control light means that the Cruise control has been disabled due to a malfunction and the Check Engine light means that there is a malfunction in the engine management system. If all three lights came on at the same time, you most likely have a bad Vehicle or Wheel Speed sensor - this will affect all three. The only way to find out for sure if this is the cause, or to find out which speed sensor is at fault is to scan all your computer modules and retrieve the fault codes

The cruise control is automatically disabled whenever there is a problem that triggers the CEL. The flashing CC indicates that it is disabled. I'm not sure about the Stability Control light being on, but would think that if there was traction problem causing the Stability Control system to kick in, it would also turn off the CC -- the SC uses braking and engine throttle to stabilize the car so the CC has to be out of the loop.

If the CEL is still on, I'd have the codes read to see what triggered it. Usually, if a problem is not detected again for three consecutive driving cycles, the CEL will go out (although the code is stored for a longer time and can still be read).
Read the codes yourself. 2005+ models display all the engine/transmission/abs/vdc codes on the dash.

Just perform this sequence within 10 seconds:

1. Turn key to ON position (just before START)
2. Turn headlights ON
3. Press Trip button 4 times
4. Turn headlights OFF
5. Press Trip button 4 times
6. Turn headlights ON
7. Press Trip button 4 times
8. Turn headlights OFF (optional)

Codes will display in the trip meter. You might have to press the Trip button to cycle between engine, transmission, and braking computers.

The abs/vdc codes, at least, should be saved forever unless a dealer clears them.

You're under 3yr/36k mile warranty SUBY bro (we've got an 05 legacy 2.5i) take your car to Subaru Service......

check your vacuum lines to ensure the cruise s connected and are not cracked or dry rotted by bending them to start with .as well look visually for anything obviously missing or disconnected

It is safe to drive your car. What happened was you have a Check engine light on indicating a problem with the emission diagnostic system. This also makes your cruise not work, and the light to blink. Take your car to your dealer at your convienence and have them diagnose it.