did you see exactly this when you did rfcomm?:
rfcomm0: xx:xx:xx:xx:xx:xx channel 1 clean
(without xx:xx... of course ) Make sure you didn't get something else. It would be nice to see a complete copy of your terminal output while you are doing these things too. It's difficult to diagnose a problem without knowing what exactly happened.
Do
$ sdptool browse local
You should find something like this in the output
Service Name: Serial Port
Service Description: COM Port
Service Provider: BlueZ
[...]
Protocol Descriptor List:
"L2CAP" (0x0100)
"RFCOMM" (0x0003)
Channel: 1
then do
sdptool records xx:xx:xx:xx:xx:xx
(with your BT shield address)
you should see something like
Service Name: SPP
[...]
Protocol Descriptor List:
"L2CAP" (0x0100)
"RFCOMM" (0x0003)
Channel: 1
make sure all the channel numbers match each other and your rfcomm.config file. Also make sure your cat and echo commands output file name match the actual rfcomm. e.g make sure it isn't >/dev/rfcomm0 when your shield is on rfcomm1.
If that still doesn't work then I've ran out of ideas, maybe your bluetooth shield is faulty.