The blinking thing is cat smiling. I like doing it to cats I walk past on the street - you sometimes get an astonishing reaction, I think when the cat isn't used to a human doing it. It will sit up very straight and stare at you for a moment, then half-close its eyes to check you mean it. If you do it again, 9 times out of 10 the cat will come over and demand a fuss.
Apparently this is also why cats often dislike babies (they stare) and love people who are allergic to them (they turn away with squinty eyes)