There was a known bug in that the icon sometimes didn't go blue. If, however, you're getting past the "Searching for music" stage on the Receiver, I shouldn't worry about it.

How far is the bootup of the unit getting? It should say "Searching for music server", then "Found music server", then "Rio Receiver/Searching for music"

I had a similar problem yesterday, but it was on Win2k, so I don't know if its relevant. Stopping and restarting the Audio Receiver Manager fixed it. Don't know if it'll work for you.