Know what, I had a LRP QC2 that would start smoking when I would pull the throttle! It would be fine if I didn't do anything, but as soon as the wheels started spinning smoke!
I sent it back and they gave me a new one, then the new one I got had one of the on/off wires pinched in the case and it broke, so I couldn't make the darn thing stay on, I contacted LRP/Team Associated and they sent me a new one AGAIN!!!
Their customer support is top notch, I suggest giving them a call or e-mailing them.
On the other note. You should post that pic, if the light isn't turning on and everything is set-up properly, you should check the on/off switch wires, if one is cut there will be no power no matter what. You can fix this by just soldering the two wires together, but everytime you come off the track you better unplug your batteries, especially if running lipo.
I think it's the on/off wires, if not, it's pooched. Send it back!!!