I'm also seeing this problem. It seems to be intermittent. I have IMAP configured and i find most of the time the notification is not lit nor do i get an audio indication when new email arrives. Yes, i've turned the device on and off and only unchecked options, saved, rebooted, checked options, saved, rebooted etc etc. I am using the latest PR 1.2 and 10.2010.19-1.203.1. BTW, this is even if i have the email widget on and also the email client running in the background! And yes, i have sounds + lights configured.