Black electrical tape.
Don't worry about a little white light, instead of focusing on how bright it is focus on sleeping
If your phone is rooted: Buy the dock. Download LEDs Hack from the market (Free) It will disable the top led, and softkeys when your phone is docked. and turn them back on when removed. (if you so choose). Good options in the settings. lets you pick and choose what, and how.
edit: so you can still use the clock if you want, without the bright softkeys
edit2: oh yeah, and if you use the brightness control app you can reduce the backlight considerably. its almost off and doesnt bother me when sleeping. ( im really sensitive to light, keeps me from the sleeping. with this option it works beautifully. i can still see the clock if i wake up, and i can sleep.)
That specific LED isn't located in /sys/class/leds/ so I'm not sure whats going on there...
I looked into some other areas and still couldn't find anything. I too feel it would be nice to disable this, I've noticed that the LED turns off when the phone is completely charged, I'm going to look into a method to make the phone think its charged, and turn the light off...but still continue to charge itself.
I love the LED's hack! The softkeys staying lit was just bothersome to me. It didn't require a custom ROM, custom recovery, installing any extra root tools, or any of that, just flashing the little 10mb root update. Oddly enough, that and Root Explorer usage are some of the only reasons I've found to root this phone, really. I'm not an incredibly big fan of the one custom ROM I've found for the Droid, and I've yet to see much evidence that 2.1 is much more than quickly slapped together, buggy, eye candy, that Google used as a selling point for their bad boy, the Nexus. "Ohh look at my 1ghz Snapdragon, spinny galaxy background, neato looking launcher, and music player that looks somewhat akin to that of that fruit phone's!" Anyway, the guy I quoted has the best solution to your problem, that I see offered, and the LED's hack is an awesome little app. On top of that, you could probably make yourself a dock for five bucks out of random materials you could buy anywhere, think styrofoam and chamois cloths, tunnel a small hole through the cloth and foam for your charging chord, and your problem LED is hidden, then flash the root update, download dockrunner, download the LED's hack, and you're good to go! I like little DIY projects like that. It's been confirmed that 2.1 isn't coming over the air just yet, and, unrooting involves nothing more than flashing the 2.0.1 update zip, so I see no reason to go hardware modifying your phone, or putting adhesive materials or something on it, that could potentially damage it, as opposed to just making your own dock, rooting it, and downloading a few apps.
Originally Posted by freeloader