Do the lights go on and off periodically, with a regularly-timed cycle, or is it random?
If it is a random thing, then it's probably a loose wire inside. As the engine moves, it makes and breaks the contact.
But, the LC series decoders support some of the standard ligthing rules for prototype locomotives. For example, the rear headlight on my Alco RSC-3 will flash while the engine is in motion, while the front headlight stays on.
It takes an iron man to play with a toy iron horse.
JRP...I can turn them on and they stay on, but then when I add just a slight bit of power and the engine starts moving, they go off, then on and off again as I add more power...