Will it go to high idle when you try and strike and arc? Rheostat, reed switch, etc all look operable?
Go to page 8 of this manual, then to problem 2. You will see where it mentions flash exciter fields.
http://content.lincolnelectric.com//pdfs/products/navigator/im/IM276B.pdfOn page 9 after all symptoms have been listed you will see 'footnotes'. The second one will explain flashing.
Is this on the same machine you have been having problems with?