Have you received any phone calls since turning it on? I wasnt receiving the LED flash either, so I turned it off and back on and now it is working.
I just saw you have to have your ringer/vibration off AND have your phone laying on its front to see it. It comes from the flash next to the camera lens.
It's called "flashing and/or rooting" in the non-iphone world. My evo is both rooted and flashed with a custom rom. My GPS works fine and yes I have free wireless tether. Oh and only rooting is necessary for the free tether.