Velleman + Arduino

Thanks for that. Unfortunately, there's still something wrong.
I've swapped out the components and now it looks like this:

The calibration instructions say the following:

  1. Turn RV1 fully counter clockwise and turn RV2 fully clockwise
  2. Set the control voltage to 0 VDC
  3. Apply AC power
    4 Adjust RV1 until LD1 (green) starts flashing rapidly
  4. Trim RV1 just below the bulb ignition threshold <----I don't really know what that means
  5. Set your max control voltage e.g. 10VDC <-----I'm doing 5v, which is my max
    7 Adjust RV2 until LD1 (green) burns steadily <------goes out instead of being solid

Here is a video of exactly what I'm doing:
http://www.angelaguyton.com/temp/velleman.MOV

And here's the code for the knob:

//Example 06B page 67 of the Arduino book.
// A brightness specified by the value of the analogue input

#define LED 13 // the pin for the LED
#define lamp 9 // pulse width modulation to VELLEMAN

int val = 0; // variable used to store the value coming from the sensor

void setup() {
  
  pinMode(LED, OUTPUT); // LED is as an OUTPUT
  // Note: Analogue pins are automatically set as inputs 
  pinMode(lamp, OUTPUT); // lamp is an OUTPUT 
}

void loop() {
  
  val = analogRead(0); // read the value from the sensor
  analogWrite(LED, val/4); // turn the LED on at the brightness set by the sensor
  analogWrite(lamp, val/4); 
  delay (10); // stop the program for some time
 
}

It feels like the value of the pots that I adjust are in the wrong range, but they are the ones that came with the kit and their values match the instructions in the booklet (so its not like they're the wrong type).
What do you think it could be?