Update, 6/1/2014:
Using the iPhone App: Sky View (free), it has been determined this star/object is none other than VEGA!!! Why and how it pulses and performs its disco ball effects is still a mystery to me! I would like to think it is some kind of chemical inversion layer in the night sky, but no other stars are pulsating like this. I have tried to contact certain astronomy experts at US universities but they seem to be too busy for such frivolousness.
Gloria in excelsis Deo!

Update, 1/2/2012 (1 year anniversary):
After careful consideration and constant observation of this colorful "star," as well as a few others like it, I have determined it is truly a "star" and that it's pulsation is due to an inversion layer in this area of California (& various other places in the world according to similar videos). In my particular area the inversion layer forms around 6,000 feet and is pretty constant due to chemicals and pollution in the agriculturally based, world famous CA Central Valley. Our air quality is constantly poor since we are surrounded by mountain ranges as one can see from any topographical map. Why other stars are not also pulsating is not known at this time. Perhaps its brightness is enough to cause a pulsation when viewed from earth in particular locations with fine particulates in the air at a certain altitude. Without observation from an aircraft flying above 6,000 feet, it will be difficult to truly know.

I'm sorry to say that it is probably not a UFO since it moves consistently with the stars. Thank you for your support and interest nonetheless.

Blessing for 2012 and beyond!

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Amateur video footage of a multi-colored, rapidly flashing UFO in the night sky in Merced, CA on Jan. 3rd, 2011 between 9PM and 1AM.

At quick glance, the object could have appeared to be just another bright star in the sky. However, after further observation with binoculars it was determined by several eye witnesses to be a multi-colored flashing object moving steadily to the west and further upward in altitude.

This object was viewed from Merced, CA (central valley / central CA) and appeared to be starting directly east (over Yosemite & further away Area 51) and then slowly migrating towards the direction of Chowchilla or Los Banos which is directly south-southeast. It also appeared to be between 33-45 degrees above the horizon.

Eyewitnesses also determined this object could have been part of either an equidistant triangle of 2 other similar objects or a larger pattern of pulsing orbs, but these were more difficult to locate with a video camera since they were perhaps further away.

The object was filmed using a JVC Everio camera using a tripod with 800X zoom capability on ultra fine image quality.

It appears to have twin white bright lights surrounded by a circle of colored lights rapidly flashing: blue, red, green, etc.

There was another similar sighting by other eyewitnesses on New Year's Eve (2 days previous) in a similar location with similar flashing lights, but this object was seen hoovering and then moving rapidly across the sky to the north.

(Update 1/4/11): Seen again tonight. It appears to be fixed and NOT moving with the stars-- sorry people who think it is a star!!!

There also seems to be several of these same pulsing orbs slightly apart in the sky forming some kind of pattern & also NOT moving with the stars. At dusk they appear to be co-mingled with Orion's belt & then further in the night Orion's belt rises above these pulsing lights.

These pulsing "stars/orbs" are much different than all the other stars in the sky. If it was just a star, then why can't I get the same pulsing effect when I zoom at ANY other star?????? Also, why won't these stars move with the other stars?????