We had the same problem with ours, but I fixed it.
This is what I did.
First, disconnect the power - essential!
I removed and emptied the reservoir and condenser and cleaned them and ALL of the filters thoroughly - dont replace them yet.
Second, get a big towel, a mop and bucket and then tip the dryer on it's side.
On the underside is a grey pipe with a jubilee type clip, undo the clip and clear out any gunk! By now there will be a puddle on the floor.
On the back of the dryer is a small white cap, with another clip, undo this and again clear out any gunk, replace both the pipe and the cap.
Tip the dryer on its other side and some more water should leak out.
By now the puddle should have grown - I got another pint or two out doing this, so I recommend mopping the worst of it up.
It seems that overloading the dryer creates too much moisture that the system can't eject it fast enough so it builds up, I believe that most of it gets caught in a pump/well at the front of the machine, at the bottom. If you open the bottom of the two doors on the front and slide your hand in at the right, you can feel the blades of the pump - this seems to be where most of the water gets stuck. So even if you empty the water bottle - the actual water ejection system (pump and piping) is still loaded with water and hence the light stays on. By tipping the machine and clearing out all blockages, you can get the excess water out.
Now, replace the condenser and water bottle, the clips if you haven't already and the filters. Turn the machine back on (with no washing in it) - and hopefully it'll spring back into life.
Run the machine empty for half an hour to clear any more moisture left in the machine whilst cleaning up the puddle that now occupies your floor.
My advice - don't get me to do your drying - since I tend to overload the machine and clean it once in a while.
Hope this helps someone else.
MeezFixesFings, November 2009