I guess this comes under the situation that if all else fails, read the instructions...I'll plead the 5th on this one....
Right from the Atwood manual...
"GAS OPERATION. When the gas switch (electrical flip switch) is turned on, the unit will make three attempts to light. If for any reason there is no ignition, the unit will lockout and the red lockout lamp will illuminate."
After finding out why it didn't light, you reset the routine by turning the flip switch to OFF and wait 10 seconds...
Ours also illuminates the RED pilot lamp while the electronic ignition is in the process of lighting off the gas - then goes off, telling us we're flaming away - but we can hear it as well...just as you described...
Ray