Larry,

Do you have the 4in1 or 3in1 with the seperate receiver? If the red and green light are alternating then the receiver isn't connected to the transmitter.

If you move the pushrods in toward the center of the servo horn you will need to adjust the pushrods, so they are smaller. So with the motors unpluged, at half throttle, and in idle up the swashplate should be level.

Nick