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. read more