Sorry, I wasn't clever enough to put "original announcement Spotify Connect" when I was searching the support pages. The pages I found wasn't very transparent that it's an iOS feature only at the moment.
Yeah so there isn't any mention of this being iOS only on the Spotify pages talking about it. I have just bought one of the compatible Pioneer wireless speakers exclusively to use this function with my android device, only to now discover (after looking online quite a bit before buying) that this only works with iOS. Not even with the standard Windows desktop software!
I believe that connect is still rolling out to users and a Premium account is needed to use it. The list of compatible Pioneer devices is shown here. All connect hardware works with both iOS and android devices. Connect for the desktop client would be awesome and may happen once it is fully rolled out on android/iOS.
Yes the lights are blue, red, blue. Sometimes the Network light flashes, sometimes it is solid. I have tried tapping the input button, which turns the input red light off. Still no obvious way of getting spotify to connect to it...