New code not running despite flawless flash

The following shows up in my terminal window as 'tjdolan' got when I try to program Arduino BT with the led_blink sketch.

Code:

Binary sketch size: 4144 bytes (of a 14336 byte maximum)

Atmel AVR ATmega168 is found.
Uploading: flash
Firmware Version: 1.15
Firmware Version: 1.15
 
And, he is suggested that his Atmel chip doesn't work. I was wondering anyone having this same problem tested the board with a replaced chip. I have Arduino BT, and there is no way to replace the chip for Arduino BT (but chip can be replaced in NG). Before I will order a new BT, I want to know if anybody tried it with a new chip? Since BT is around $120, I wanted to know...

Any suggestions would be helpful...

Thanks...