Thank you for your post.
1. Make sure that your computer isn't configured to go into Sleep or Hibernate mode after a period of inactivity. If your computer is asleep, the iCamSource will not be actively running, and you will not be able to connect. You can still run your screensaver so that the screen is off. What are you running Mac or Windows?
2. Unfortunately, the light is something that is controlled by the hardware, we don't have any ability to disable it.