Yeah sadly no schematic was on the website that had the code..
A guy in the reddit thread said that one of the components on the sensor can and most likely does act as an amplifier.
Here is the original post:
http://www.reddit.com/r/arduino/comments/2414gw/testing_a_new_sound_sensor/
As for the LED, if I take down the threshold from it's original value (400 something) it lights up. So I think it should be working as it should, however the sensor doesn't even increase a little no matter how much noise I make.