Which pins are u using for the BTmodule it comes preset to 6/7 I think. Just stay away from pins 0/1 on arduino as they are used for hardware serial communication… If that isn’t the issue check the wiki page@http://www.seeedstudio.com/wiki/Bluetooth_Shield. And make sure the jumper is set correct for tx&rx. Of course it could be if nothing else a faulty board… If I can help u any other way just let me know…best of luck to you.