Update
Eventually picked up the courage to try to fix this problem - got the front off the Xbox and eventually the front PCB with the LEDs.
I looked at the connector array, gently pulled on the wires expecting one was loose - nothing, solid as a rock. All solder joints looked solid too but I used a lupe to make sure and they're all clean and shiny.
So I reconnected the plug to the main board and gingerly turned on the power. Both LEDs lit up green and no matter what I did, tapping the right LED, connector array and even flexing the PCB, the right LED didn't even flicker once and stayed green until it went to flashing red as I had the DD/HDD disconnected.
I thought that my fiddling might have 'cured' the fault so I reassembled the front panel but checked the right LED was behaving itself just before clicking it back in place. The answer was no, it was now off refusing to go green but went to flashing red as normal.
I traced it back and the point it stops working correctly is when the PCB is clicked home into the front panel and locked in place by the bottom clip. Happens every time.
But why? I couldn't get the LED to flicker even with some pretty firm flexing of the PCB yet the simple act of locking it in place cause the fault. Any explanation and/or suggestions appreciated.
What I'd also like to know is if these front PCBs are interchangeable between console versions? I've found, more than once, that simple variations in manufacturing tolerances can mean just swapping components between working equipment can solve this sort of problem satisfactorily.