Hi Dotti
You won't have to research far to find the effects of flashing light and colour on baby's eyes and it's not good news. Here is an interesting article I read during the week about baby DVDs but it mentions why babies stare at TVs:
Baby DVDs - Health Report - 17 March 2008

You really don't need to 'entertain' your baby at all. Ever, really, even when older. They love lying on the floor, looking around or in the bouncinette watching you do your work, listening to you singing to them, chatting and checking on them. Everything to baby is a really big deal- their toes, hands, their breath, the light coming through the window, their body moving, the sound of the vacuum etc Baby has to assimilate all these new experiences into the body and process what is happening. Can you imagine how amazing all these things are to a baby? And imagine the noise, light and colour from the tv on baby!
Anyway, I have never 'entertained' my toddler or baby but they get plenty of love and attention and they learn plenty. When baby is awake, feed and change her, bath her, sing to her as you do these things, lots of kisses and cuddles and then let her explore her world by herself until her next sleep time. Move her around a couple of times during each awake time. Even with a 2 yr old she follows me around as I do my jobs and try and keep my home tidy and comfortable and then she goes off and imitates me doing my work! It is gorgeous to watch her bake cookies and sweep the floor with her toys! So to make a long story short it is not for you to entertain your bubs but to provide all those essentials- love, warmth, security etc as baby fits into your life and home routine!