Hi
The keyboard backlight not working and the option to turn it on or off not appearing in the keyboard and mouse control panel will be due to either a hardware or software problem. There have been a number of threads to do with this in these discussions, so you may want to search through them.
First up you should try resetting the PRAM and the PMU.
Here are the instructions for the PRAM
http://docs.info.apple.com/article.html?artnum=2238
Here are the instructions for the PMU
http://docs.info.apple.com/article.html?artnum=14449#faq10
If that does not work you can try creating a new user account then log-in to that account and see if the backlight works.
Next try deleting the following files:
Macintosh HD>Library>Preferences>com.apple.BezelServices.plist
And
Macintosh HD>User>Library>Preferences>com.apple.BezelServices.plist
Drag both to the trash and then restart, these files are preference files and you cannot delete them until they are 'not in use'. So to do this you need to restart, the system will then regenerate new files and you can then delete the old ones.
Check your keyboard backlight is there a check box in the keyboard and mouse control panel?
If it is still not functioning we are running out of options.
I would hazard a guess if you try all the above and still there is no option to turn on the keyboard backlight by the checkbox in the Keyboard and Mouse control panel then it is probably a hardware failiure and you need to contact AppleCare if you have it and see about getting it fixed. Some might argue trying an Archive and Install of the System in case some piece of software has got corrupted or gone missing. That's up to you.
All the best.
Phil