A quick addition to this thread, Bax is correct, the little red lights only flick on and off on both the receiver and transmitter when either the "test button" is pressed or the transmitter is fired through the hot shoe.
I have 2 transmitters and 2 receivers, but only for use on monoblocs and both operate the same way. I have just finished using them and thought I would include a couple of shots showing the switch configuration I use. Darren, if you have the channels set the same and then press the test button both red lights should flash on and off quickly, if the receiver isn't doing that then it only leaves a few options,
#1 It isn't switched on.
#2 The batteries are in the wrong way round.
#3 It is faulty.
I hope it something simple mate, start at the beginning again and track it down.