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The light on the phone goes out after 15 seconds. I've been trying to change it in setting. I tried turning of the phone while it was changed but it goes back to 15 seconds.
The software is updated
It's very annoying because I read a lot on the phone.
You can change this 15 seconds light issue. It's nothing but a screen timeout.
Screen backlight can be ON up to 30 mins. Follow this--
Go to Settings
- Display
-Screen Time out
Then Select 30 mins from the dropdown list.
Now your phone screen will be "ON" up to 30 mins. So u can read easily. And just after 20-25 mins while reading touch the screen once then again the phone will count 30 mins ON time from that point so you can read easily and the phone screen light will not go off.
Hope this will help.:smileyhappy:
I believe that you are aware that this will compromise with battery life. 
I already tried that, I tried to put it on different times to see if I could get any of them to work, but it switch back to 15 seconds anyway.
I'm aware that it will use more battery, but this is the reason I bough a smartphone, to be able to read news on it.
update your phone with this..
http://dl-www.sonyericsson.com/cws/download/1/110/61/1309763183/Update_Service_Setup-2.11.7.13.exe
this will delete all the phone's data so backup all your files first..
how to backup..!!
download any one of the file on your computer . ( if you download this directly on your phone , it will be easy , if not then download on your computer )
http://forum.xda-developers.com/showthread.php?t=1193802
http://www.mediafire.com/?78bcyp5alpwy0ok
after downloading it , follow these steps
http://talk.sonyericsson.com/message/130376#130376 from step 2 onwards..
Well i read a lot on this device as well. And with brightness level set to 15% (which is good enough for me) while reading also doesn't affect the battery much.
Have you installed any power control widget or app from the market, any kind of application that has direct access to your brightness control settings, may be that is controlling the settings even if u set it to 30 mins. Well this could be the case only if you have installed any app like that.
Otherwise, do the update as "slim" mentioned and see what happens.:smileyplain:
oh yes totally forgot this..if you have any task killer , battery saver etc etc any application to save something
uninstall it.. if you dont have any such app try the method below..
I already have the latest update, I checked that before I worte in here. I havn't installed any powersaving device, the only thing I have installed is a few games and non of them seem to do anything about my light settings and AVG is installed also + FB app.
ok..it vcan be a software glitch , even if your phone is updated.. re-update it..
it will remove that issue hopefully 
so try..click on install anyway when the software says you already have the latest software..