As bspymaster said, the kinect light is broken on the diagnostics tab, but the indicators on the operation tab is working. The error is noted here:
http://wpilib.screenstepslive.com/s/...d-known-issues
The Kinect skeleton display was removed from the front panel in the 2014 default dashboard. However, the Kinect Skeleton VIs are still included in the the project, so you just have to use them. You can refer to the 2013 dashboard project for how to use them.