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This unfortunately sounds like you will need to RMA the device. The white blinking LED like that means that it can not find a device to boot from. I'd suggest mailing whichever store you bought the Smartbook from, and see what your options are. Unfortunately we do not have a way to restore these machines at the current time.
Is it the processor that cannot find the flash memory where u-boot is, or is it u-boot that cannot find the boot.scr file? If it is the second option, would it be possible to boot from a SD card with a boot.scr to recover, or at least find out what is happening?