I responded to a related thread over in the 8100 series board but wanted the 8703e owners to be aware of my problem so I'm posting a link to that thread. I hope this doesn't break any forum rules.
Here's the link:
http://www.blackberryforums.com/gene...age-light.html
The most current status: The unit is being swapped for a new one since it seems likely it's a hardware issue.
So to all those people out there who have green LED notification problems (sometimes blinking green, sometimes off), check your auto-backlight when the LED is not working. You may have a bad light sensor/LED since they are the same! The symptom is when the green LED should be blinking green and is not while in a good home service area and the auto-dimming backlight is stuck on high @ 100%.