The red dot indicates a failure to connect to the Wi-Fi router. The most likely cause of this would be an incorrect password. If you are certain the entered password is correct, get as close as possible to the Wi-Fi router, then try connecting to the network again. You also try toggling the On/Off switch at the bottom of the Wi-Fi settings menu and make sure it is left at the "On" position.
Note: To see all available Wi-Fi troubleshooting in one place, please visit www.leapfrog.com/wifi