sirphilip:
Here is a picture of my circuit set up. Any advice?
http://i.imgur.com/EKZ8n.jpg
I've got a board like that. The black sides are made of metal (aluminium I think). It looks from the photo the metal side is very close to, if not touching, a row of pins on the side of the Arduino. That won't help if it does.
Also judging by the photo you have run Vin to the minus (blue) rail, and Gnd to the positive (red) rail. That's OK if you are consistent, but as long as you don't get confused later on.