I've downloaded the latest version of AuReiNAND (3.13 released 10 mins ago) and extracted all files from the 7z archive (AuReiNand.dat & arm9loaderhax.bin to the root and the 3ds, aurei and menuhax folders were merged).
I had the same problem. You have to get the firm.7z file from the github and choose rei-n3ds drop the firmware.bin into the aurei folder. The reason, I think, that the light flashes and goes off is because you probably dropped the fimware90.bin into the aurei folder.
Is E: your sdcard?
If so, move everything to root. It looks like you're in E:\EmuNAND9.
Just cut everything from there, go back one step so you end up in E:\ then paste.