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It is the last button on the left side of the keyboard near shift key with Signal up logo (I think with yellow light, when enable) that enables/disables the wireless adaptor. Hope it helps, CreativeTECH
There are links that show you how to repair this issue yourself (but they are not very clear and every thing is very fragile inside the XBOX 360) or you can contact me via email at email@example.com and we can discuss the issue further as I recently repaired my XBOX 360 with the same issues and it works better than when was brand new.
The red meant it was ready for configuration. If there is no light it means it is not receiving power. Try plugging it in again, or plugging it in to a front USB slot. If it still doesn't work your adapter has a defect and should be replaced.