[matchstickredgti]

Probably better off posting in the Android Development forum.

But the LED stays on for now, orange is supposed to indicate CPU is in use and green indicates your phone is asleep. No way that I am aware to disable it. I believe this is also in the FAQ.

And the LED won't drain the battery, it uses very very very very little power.

Edit:

from the FAQ

My Notification LED is always on?
Current state of the Notification LED is more for diagnostic purposes. It isn't functioning yet for true notifications. It is more for diagnostics right now from my understanding to let you know that the phone is in sleep mode. If the light isn't Green when sleeping then it hasn't ran it's power collapse mode and it is draining your battery. I get an occasional Flash from Green to Orange and I assume it is when the phone wakes up to check things like mail etc. But otherwise it is Green all the time the phone is sleeping. Which is good!