Don’t have a clue as I never had that problem on the 360. I had the problem with having to wait an extra 8 days because the weather did not allow me to see the light, but that is about it.
Make sure you are standing back from the altar; sometimes it is a little hard to see if you stand too close. Besides that the only advice is to try an earlier save. Even if you do not the grand soul gem or the spell, you could still check to see if the light shows up. I find Fort Istirus the easiest and most convenient to get to and see the light for a low level character. On a clear night you can even see the light from the road. It is also a good location to fill your newly created Black Soul Gems.
If you start over, you can purchase one Grand Soul Gem, even at level one, from Calindil at the Mystic Emporium in the Market District. However without “The Wizards Tower,” it is a little difficult to find a way to enchant an item at that level. Even with “The Wizards Tower,” you have to come up with the coins to purchase the candles.