At first the LED's didnt work at all when you flashed hero (the hero has 2 LED's), but they fixed it so I dont know why its not working for you. When you install Handcent SMS, disable notifications on the stock app, and enable auto-retrieve on Handcent, you can also change the appearance to Dark and Hero so that it will match your phone. Go through all the settings, and once you have it set up you can do a test notifications to see if everything works. I get a blue LED when I get text's and green when I get emails. You can also change the color of the LED when you run the app on regular android, but doesnt work on G1 with Hero.