Blue/red object in nothwest sky exhibited random, high-speed, circular manuevers for more than one hour.

August 27, 2007 Approx 4:30  Weather clear, visibility unlimited, two observers   At bearing 285degrees, relative, and at about 20 degrees above horizon  Sighted blinking blue light, accompanied by blinking red light…  First thought to be aircraft but object did not move across the sky or change distance…
Initially appeared to be stationary but after a few minutes began a random circular motion, at times taking jumps in altitude of 5 to 10 degrees...At all times the red/blue lights tracked as though on a single platform.....After about 1 hour, the object had dropped to about 10 degrees above the horizon and had changed relative heading to about 290 degrees.  Object size remained constant throughout the sighting