Bluetooth shield not.. bluetoothing?

using the demo code, I seem to have everything but actual bluetooth connection.

the Arduino is a uno r3.

Arduino build is 1.0.3

operating under windows XPser.3

serial monitor shows slave bluetooth in inquirable.

Led is flashing green only, two flashes, pause repeat.

trying to aquire via android phone finds nothing.

two phones used, motoroloa droid,ver1 android version 2.2.4

moto droid4, android version 4.0.4

demo code for slave example is un-alterend.

any ideas about this folks? If I understand correctly, the shield should be flashing green and red