1) Charging while powered down, the battery icon will appear solid white with nothing else flashing. If it's still charging, it will slowly flash like a charging battery with a black section indicating how much still remains to be charged.
2) Charging while powered on, there will be no charge (lightning) icon in the battery. Also going into Settings>Battery will tell you if it is charging or not.
the lightning bolt goes away on mine.. the battery jus turns solid white. I agree it should be green though
I don't think the LED notification light is working properly yet. I just downloaded Handcent to test the LED and when I press "test" to see it light up, the app force closes. And it doesn't light up for other typical notifications like G+ updates.
Light Flow is the answer! It will tell you when battery is charging, when it is fully charged, you can set a notification light to let you know when charge drops to a set level, and it will set LED to blink when an e-mail arrives!
I concur with the two above -- light flow! There is a free version, and i love it. It gives different colors, flashing intervals/patterns, customized to specific apps (and sometimes even specific contacts!). I have mine turn bright pink and stay on solid until i unplug it. Works fantastically!