Interesting. The behavior I'm used to seeing with the LEDs on a Model M (and most PS/2 keyboards for that matter) is that all 3 LEDs should flash on for a fraction of a second on first power on, then usually the Num Lock LED will turn on, it may turn off once the OS boots if the OS disables num lock by default. You may want to reopen the keyboard and just make sure that the ribbon cables that come off the membranes are plugged into the circuit board fully and correctly.