I have a similar Problem. But i think if your Green Led blinks its cause you reversed the tx and rx pins or the Bluetooth moduel. If that dosnt work try out some parts of the mastersketch included in the Seedstudio Bluetooth Shield demo Sketches (|>link<|)Skroll down a bit there it says Download arduino library. you can simply copy parts of the code and change the TX and RX pins and instead of “SeeedBTSlave” you have to type in the name of your pc.
By the way this is the link to my post, where I describe my problems and solutions: Bluetooth Shield connection problem