EDIT: So I guess using a RED LED for the 5th LED in the VU meter might be confusing... maybe I should just change the 5th LED to Yellow instead of RED?
I think you should keep with red, and that overall the green>yellow>red scheme will work great.
Not meaning to place this on O-canis, but I think there is some confusion on this board between dBu, which is simply a representation of voltage, and dBFS for digital recorders. That is, many know you cannot go above 0dbFS without digital clipping and therefore assume that something like 17dBu must be bad (when all it means is you are putting out a signal at a level of about 5.5v). The dBu output level of the preamp really only has meaning in regards to point at which the preamp can no longer provide output without distortion, and also the maximum level the ADC or recorder can accept without itself clipping.
The gain structure of the ADC/digital recorder creates a relationship between the dBu output of the preamp and dBFS of the digital recording, but there is no inherent relationship between dBu and dBFS (i.e., any relationship defined within the preamp itself).