A flashing green light means one of two things: either you is not logged into Skype, or it cannot get an “IP address” from your router. Flashing green during initial setup is normal.

The red LED light is normal during start up.

Under normal operation, the LED light should not turn on until several seconds after it has been plugged in.

Your device seems to be locked.  Factory reset will resolve the issue, however you will lose all the configuration data and will have to do the Setup Wizard configuration again. To initiate factory reset, use a paper clip to press and hold the reset button on the device for as long as it takes for the LED to go off, and keep on holding it until the LED turns red again, then release. When this is done, give the device some time to load the software. The LED will start flashing green indicating you can access the configuration interface again.

The indicator light shows the status of the device. If it is flashing red the device is upgrading. Please give it some time to finish and then check if the light changes to steady green.