Yes the red glow must be the standby light. I remember that I changed the network settings from DHCP to a fixed IP address. My BM5 is connected to an airport station via ethernet cable. I just checked once more: First time I press Connect, my BM5 starts up (green light), Beoconnect displays "....check IP address....", second time same result, third time successfully connected. I think it`s during the start up time the client can`t be connected.
Anyway it should be possible to start BS5, connect to client and switch to TV. If a client is connected to BS5, BM5 should NOT switch back to standby.
Now it`s possible to transfer music and watch TV at the same time.
Hope this helps.
Stefan