nice pulsevu install.
As for how it works...well, it'll fade while the Wii is off. While the Wii is on, it will be music reactive (aka- Every time a sound comes out of the Wii, the light will turn on...if you play music, it'll
dance to it). If you have a message (and your Wii is off), the lightbar will pulsate twice...hard to describe. You'd have to see that for yourself to understand. Umm, lets see..you can use the Reset button to disable the PulseVU.. and yeah, I think that's just about it. Perhaps sick or pablot will elaborate.
As for the solder point that standing straight up...it may be a problem. Check to see if it's "higher" then any other components on the motherboard..and check to see if it'll touch anything when back together.
As for wiring LEDs, sickmods.net has a tutorial for wiring LEDs-
linkThere are other tutorials for wiring LEDs in the Xbox 360 Hardware/Case Modding forum pinned topic "Tutorials, FAQs, etc" (or whatever the pinned thread is called)
Here's a pic of my PulseVU install
More pictures-
linkEDIT- why is your pulsevu different than mine!??!
cuz i am cool like that....that thing that is stand up is a resistor not just a wire...and i dont hav the wii connect 24, but it still works ooooo owwwwww i must just be special like that..