My guess is that the light is for the gyro. Make sure that the throttle (and throttle trim) are all the way down (off) and that the other trims are centered. Plug in the battery and do not move the Tx or heli while you wait to see if the gyro intializes. The light should go from a blinking red to blinking green and finally a steady green.
Also make sure that you're using a good set of name brand batteries in the Tx and that the antenna is (hand) tight and fully extended.
Just my 0.02 worth.

P.S. Don't forget to wear eye protection while operating or working on your RC model.