As an update, the light seems to appear intermittently and I'll assume things are fine for now.
Saw the issue, albeit somewhat different, mentioned here (which suggests the tally light coming on is normal):
http://www.dvinfo.net/forum/view-video-display-hardware-software/77894-sony-pvm-14m4u-question.html
A quick shot of my setup when it's not aggravating me
damn that looks amazing. Is that guy still making those scart switches?