Sorry, I didn't reply with what resolved this. After exchanging many emails with the developer (who is very helpful with great customer service by the way). I'll post the email log (hopefully it helps):
Start from the bottom and work the way up
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Ok, I removed the app, reinstalled the market version, set the notification settings without vibrate, restarted, tested with no luck. Installed the beta version, set the notification without vibrate, restarted and this fixed it. I then setup the vibrate, restarted and both worked. Not sure if it was caused due to installing and changing settings in a different manner, but it works now. Thank you for continuing to be patient, working with me on this problem. I'm fully aware it is hard to troubleshoot not being able to see my device. Love the software and support, I will recommend your product to any android users.
Sent from my Android phone.
-----Original Message-----
From: NitroDesk Support [support@nitrodesk.com]
Received: 1/6/10 1:03 PM
To: Brown, Daniel [Daniel.Brown@peopleshealth.com]
Subject: RE: Exchange for Android 2.0
Daniel,
You can set that to the system defaults to see if it works?
We have never heard situations where this has been an issue before. Some users had required a reboot but that was about the only workaround required..
-g
Goutham Sukumar
Founder
NitroDesk Inc.
Site:
NitroDesk Inc. - Convergence Redefined
Blog:
The NitroDesk Blog
Forum:
NitroDesk TouchDown | Google Groups
The Best Selling Exchange Sync solution for Android Devices
PS: Comment/rate the "Exchange by TouchDown" in the Android Market please ?
From: Brown, Daniel [mailto

aniel.Brown@peopleshealth.com]
Sent: Wednesday, January 06, 2010 10:21 AM
To: NitroDesk Support
Subject: RE: Exchange for Android 2.0
It seems like changing the settings have caused my led light notfication (white light only) to stop working all together. I've tried going back to the latest version on marketplace and also re-installing the beta with no luck. Are there any other possible solutions or specific ways to save these settings to make them work?
Thanks,
Daniel
-----Original Message-----
From: NitroDesk Support [mailto:support@nitrodesk.com]
Sent: Wednesday, January 06, 2010 10:33 AM
To: Brown, Daniel
Subject: RE: Exchange for Android 2.0
2.0.1.. just tested again, and see that custom color flashing..
-g
Goutham Sukumar
Founder
NitroDesk Inc.
Site:
NitroDesk Inc. - Convergence Redefined
Blog:
The NitroDesk Blog
Forum:
NitroDesk TouchDown | Google Groups
The Best Selling Exchange Sync solution for Android Devices
PS: Comment/rate the "Exchange by TouchDown" in the Android Market please ?
From: Brown, Daniel [mailto

aniel.Brown@peopleshealth.com]
Sent: Wednesday, January 06, 2010 8:17 AM
To: NitroDesk Support
Subject: RE: Exchange for Android 2.0
Did a complete removal, then installed the latest beta, updated the settings, restarted, still no luck. Are you using android 2.0.1 or 2.1? I'm using 2.0.1.
Sent from my Android phone.
-----Original Message-----
From: NitroDesk Support [support@nitrodesk.com]
Received: 1/6/10 9:51 AM
To: Brown, Daniel [Daniel.Brown@peopleshealth.com]
Subject: RE: Exchange for Android 2.0
Ok.. td uses the light on the right, so that is the expected behavior.. you can of course try the latest beta just in case, since I am running that version (assuming you are not running that) :
Installing the latest beta - NitroDesk TouchDown | Google Groups
regards
-g
Goutham Sukumar
Founder
NitroDesk Inc.
Site:
NitroDesk Inc. - Convergence Redefined
Blog:
The NitroDesk Blog
Forum:
NitroDesk TouchDown | Google Groups
The Best Selling Exchange Sync solution for Android Devices
PS: Comment/rate the "Exchange by TouchDown" in the Android Market please ?
From: Brown, Daniel [mailto

aniel.Brown@peopleshealth.com]
Sent: Wednesday, January 06, 2010 7:49 AM
To: NitroDesk Support
Subject: RE: Exchange for Android 2.0
Yes, I've been rebooting after every setting change
Sent from my Android phone.
-----Original Message-----
From: NitroDesk Support [support@nitrodesk.com]
Received: 1/6/10 9:41 AM
To: Brown, Daniel [Daniel.Brown@peopleshealth.com]
Subject: RE: Exchange for Android 2.0
Even after rebooting?
Any chance you can turn off other apps that interfere with the lights ?
-g
Goutham Sukumar
Founder
NitroDesk Inc.
Site:
NitroDesk Inc. - Convergence Redefined
Blog:
The NitroDesk Blog
Forum:
NitroDesk TouchDown | Google Groups
The Best Selling Exchange Sync solution for Android Devices
PS: Comment/rate the "Exchange by TouchDown" in the Android Market please ?
From: Brown, Daniel [mailto

aniel.Brown@peopleshealth.com]
Sent: Wednesday, January 06, 2010 7:19 AM
To: NitroDesk Support
Subject: RE: Exchange for Android 2.0
The color does save to the color I selected after restarting. The light itself only lights white. I'm not sure what a rom is, but I'm using the latest version of "exchange for android 2.0" from the verizon marketplace.
Sent from my Android phone.
-----Original Message-----
From: NitroDesk Support [support@nitrodesk.com]
Received: 1/6/10 9:14 AM
To: Brown, Daniel [Daniel.Brown@peopleshealth.com]
Subject: RE: Exchange for Android 2.0
Is this a new ROM ? I have been changing the lights on the Droid once in a while.
I know though, that sometimes setting the colors don’t stick under certain conditions, you can go back to settings and see if your change indeed did take effect.
-g
Goutham Sukumar
Founder
NitroDesk Inc.
Site:
NitroDesk Inc. - Convergence Redefined
Blog:
The NitroDesk Blog
Forum:
NitroDesk TouchDown | Google Groups
The Best Selling Exchange Sync solution for Android Devices
PS: Comment/rate the "Exchange by TouchDown" in the Android Market please ?
From: Brown, Daniel [mailto

aniel.Brown@peopleshealth.com]
Sent: Wednesday, January 06, 2010 7:12 AM
To: NitroDesk Support
Subject: RE: Exchange for Android 2.0
Yes, that's how I was able to even set the led notification to work as white.
Sent from my Android phone.
-----Original Message-----
From: NitroDesk Support [support@nitrodesk.com]
Received: 1/6/10 9:09 AM
To: Brown, Daniel [Daniel.Brown@peopleshealth.com]
Subject: RE: Exchange for Android 2.0
Are you actually pressing the OK button when changing colors and saving settings ?
-g
Goutham Sukumar
Founder
NitroDesk Inc.
Site:
NitroDesk Inc. - Convergence Redefined
Blog:
The NitroDesk Blog
Forum:
NitroDesk TouchDown | Google Groups
The Best Selling Exchange Sync solution for Android Devices
PS: Comment/rate the "Exchange by TouchDown" in the Android Market please ?
From: Brown, Daniel [mailto

aniel.Brown@peopleshealth.com]
Sent: Wednesday, January 06, 2010 6:44 AM
To: NitroDesk Support
Subject: RE: Exchange for Android 2.0
I appreciate the quick response. The reboot did resolve the led notification, but the light's color is only white. I've tried full red, green, blue, and mixtures of all the colors; restarting between each setting change. No matter which color is selected, only white flashes. I know multiple colors are possible, since handcent (texting application) changes them correctly.
Thanks,
Daniel
-----Original Message-----
From: NitroDesk Support [mailto:support@nitrodesk.com]
Sent: Tuesday, January 05, 2010 11:16 PM
To: Brown, Daniel
Subject: RE: Exchange for Android 2.0
It has been tested to work, but sometimes known to require a reboot.
Regards
g
Goutham Sukumar
Founder
NitroDesk Inc.
Site:
NitroDesk Inc. - Convergence Redefined
Blog:
The NitroDesk Blog
Forum:
NitroDesk TouchDown | Google Groups
The Best Selling Exchange Sync solution for Android Devices
PS: Comment/rate the "Exchange by TouchDown" in the Android Market please ?
From: Brown, Daniel [mailto

aniel.Brown@peopleshealth.com]
Sent: Tuesday, January 05, 2010 7:49 PM
To: NitroDesk Support
Subject: Exchange for Android 2.0
Currently the led light notification on email alerts does not work on my verizon droid. I can set up the color, set it to use it, but the led does not light at all when I receive an email. The vibrate does work and I love the features. Please fix this led issue. Also, I am running the paid version of the app. Thanks in advance.
Sent from my Android phone.