update

Okay, so I have yet to find a solution for the single LED constantly on issue. I've tried the suggestion posted by browne and that didn't work. I tried a few other ideas I had and they didn't work either. The closest I got was using the RC transistor setup but the light output was not acceptable.

Attached to this post is the base schematic that functions as shown in the video I posted.

I've got a couple spare ATmega328s that are beginning to look mighty tempting... (kidding!)

I'll get this figured out. Going to talk with my cousin. He teaches electronics at the local community college so I'm hoping he might have some helpful input.

v1.1.zip