Ok, my issue was the COM1 port. The Arduino board in the device manager was COM3 and the Arduino 1.0.1 program was also COM3 (obviously) but the SCOM program is looking for COM1. I just noticed that it was COM1 because of everyone's pictures of the program saying "Device is Inquireable!". Anyway, I changed everything to COM1 and now my "Device is Inquireable!".
Two issues happen now, my phone - Dell Streak Android 2.3 - doesn't find the BT Shield. I used the standard BT discovery on the phone, Bluetooth Class Zero, and Arduino Commander and none found the device :/............. please help haha
The second issue is that COM1 is used now and my serial monitor won't work because apparently it runs off COM1? When I try to open the Serial Monitor on Arduino 1.0.1, on the bottom the main message is "Serial port 'COM1' already in use. Try quiting any programs that may be using it." I guess that is what SSCOM3.2 does is monitor the Serial Communication.
The BT board is blinking and I did get the SCOM app to say:
WORK:MASTER
+BTSTATE:0
+BTSTATE:1