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...then take the camera outside and point it at anything bright, and the red turns to black
OK, and what should it be best according to you? You can see it clearly, right? I always use the AF back button and the AI-S mode some 90% of the time, even for stationary targets. As long as I put the AF point on the spot I want to be in focus, and fire away using the shutter button and the AF system of that camera has not failed me. If I am outside the MFD of the lens or too close to the focus target, in other words, I could see the green button blink and I move a little further away until it changes to the "two-triangle" display. I don't know the name of that display, sorry .