Hypersmurf
Moderatarrrrh...
Hmmm... you lost me on this one Hyper.
Arcturus already fielded this one, but I'll lay it out again...
We're agreed that Incorporeal and Ethereal are two different conditions.
We're agreed that a Ghost Touch weapon can strike incorporeal creatures, but cannot strike Ethereal creatures.
Blink says "If the attack is capable of striking ethereal or incorporeal creatures, the miss chance is only 20%". Since a Ghost Touch weapon is capable of striking incorporeal creatures, it qualifies for this reduction.
It then says "If the creature can both see and strike ethereal creatures, he suffers no penalty". A Ghost Touch weapon cannot strike ethereal creatures, so it does not qualify for this reduction. The crucial clause "or incorporeal" is missing.
-Hyp.