I have Halo 3 with an EE Hybrid Connect device. When I connect via Ethernet, I get solid blue light, and seems to work fine. When I try to move it, by disconnecting the ethernet and operating via wireless, the indicator goes red and hybrid connect disappears from the home screen on the HH setup. It doesn't work in this state, but should? I have factory reset several times. My HH does not use default password or SSID.
So have you entered the new SSID and password in the Hybrid device?
No idea, I haven't got a hybrid device. Not sure how the device obtains the SSID and password in the first place. As a test, it might be worth resetting the hub back to factory settings temporarily to see if that works.
Have you had a look through the "Tips for using the Hybrid Connect " webpage?
As mentioned by @gg30340 , when you look through Hybrid guide, there's there's a fault condition, if you have that solid red light on the device.....you are presumably referring to the device itself. Another fault condition is flashing red bars. Contact Tech support for help.