That is a good question. So I took my iPod that was d-e-d dead and plugged it in and took some pictures. When the iPod is charged, or at least not totally stone cold dead, I'll take more pictures to show you. In the meantime I've got to clean that wall by the outlet...eww!!!
If you look at Image 5 you can see that the iPod is charging, and then you can see in the other pictures that the Red light of the adapter is lit. Once the iPod is charged, I'll post pictures of the adapter with the green light lit.
I posted another picture, now that the iPod is a little less dead, that shows that it is receiving a charge. Be sure to view the pictures at full size to see the iPod display.