Download source code and compile with the following changes for LED support. These are the only changes from board to board.
BOARD = USBTINYMKII is the string the brings in LED support otherwise you can see that the MCU and clock frequency is the same as Teensy 1.0 (That is why any version teensy hex works with USBTinyMKII)
MCU = at90usb162
BOARD = USBTINYMKII
F_CPU = 16000000
I am glad to see several people jumping in and trying to help each other out and learning how to do stuff themselves. That is why I took a backseat. Also evilsperm has started releasing hexes for this board as and when new versions come out.