The red light indicates there's a problem with the CPU itself or the AM3 (if I remember right) Socket on the board. If the CPU's are working properly as indicated above then there's an issue with the Motherboard itself! Also, just making sure but u did have a connection to the CPU fan header right?
I've owned a few Crosshair iv's in the past, try cleaning the socket on the board with "compressed air" and re-seat the CPU. make sure the CPU is seated correctly and no pins are bent even the slightest even though you probably are (just saying) anyway! The Red light on the CPU is bad but I've had it happen and did what I said above and it worked for me. You can also try the "clear cmos" button on the back of the board before trying to post! After you've done all of that and it still doesn't work, If I were you, Id send it back!
That 1090-T will work on the Crosshair-V-Formula-Z I do believe, their great cpu's but to be 100% sure call Asus where ever you are to make sure! I upgraded to a FX-8150 when they first came out with the Z board...
Best of luck