Here is a link where the wolfstone people provide info on many color organs including one that looks like the one you have (kit MK110). He says the input has to be loud and that it works better if R1 is shorted.
I had the same problem when I first created mine. Lots of work, no results. The instructions I was using had me piping in the audio in via an RCA jack. Pulled that out and actually ran speaker wire directly from my left speaker slot on my stereo directly to the color organ. Everything worked fine after that. You do have to turn it up a bit to get results (be cafeful: turn it up too much and your circuit board will start smoking)