I just updated mine. The red light does go off. To configure the red light:
1) Click "Menu"
2) Go down to "Display setup"
3) Set "Display Timer" to 5 sec, 10 sec, or whatever you like. I set mine for 10 sec
4) Set "Rec/Peak LED" to Power Save
Once I hit record, whether I have the HOLD switch engaged or not, the Red Light will turn off in 10 seconds. If I hit any button while the HOLD is not engaged, the Red Light will turn on. If the HOLD is engaged, and I slide the HOLD switch to off, the Red Light will come on. The Red Light will not turn on if the HOLD is engaged, and I hit any button.