I agree with seeing a wiring diagram. It's difficult to see the problem with those pictures.
I don't mean to divert the topic but I've been looking into resistors a lot lately (and the math is fun).
In terms of resistance, I'm sure Erv will tell you that the 1ohm 1w is overkill for that you need. Personally I don't think it's a problem, and actually helps the battery last longer with the NB, and in turn reduced the chance of phantom swings occuring before recharging. The normal resistor required would be..
Resistance = Voltage difference/Current
3.7 (battery voltage) - 3.38 (blue forward voltage) = 0.32 voltage difference
0.32/1 (1000mA forward current of LED) = 0.32ohms
Watts = Voltage difference * Current
0.32*1 = 0.32watts
Erv knows much better than me but I'd assume that if you use a 1ohm resistor where only a 0.32ohm is required, you'd be reducing your LED brightness by around 60%. In practise though, I've used a 1ohm resistor and noticed very little brightness difference. The main plus for me was the longer battery uptime.