[bones20]

This has been fixed. Dont know the exact mechanism to it. What I did is
1. changed my sound setting for email notifications (removed the LED and added the sound, was initially LED + Display notification). worked
2. then added in the LED. worked
3. remove the sound. worked.
Doesnt make logical sense. but hey I am not complaining.

Another extra info on this. you could check the registry entries here:
HKEY_CURRENT_USER\ControlPanel\Notifications\{}\Op tions
0 - Show icon
1 - Show icon and play notification sound
2 - Show icon and vibration
3 - Show icon and vibration and play notification sound
4 - Same as 0
5 - Same as 1
6 - Same as 3
7 - Same as 3
8 - Show icon and notification bubble
9 - Show icon and play notification sound and show notification bubble
10 - Show icon and notification bubble and vibration
11 - Show icon and play notification sound and show notification bubble and vibration
13 - Same as 1