bootloader was corrupted somehow (only happened once or twice, not really sure how, may have been due to my reprogramming the bootloaders to give modules a new name)
I am experiencing the same problem with my arduino bt. I went to reprogram a name and key on the bluegiga module. A few minutes later I unplugged the power, then a few seconds later back in.
Now pin 7 seems to be strobing on/off. It sharply rises to high, then slowly drops to ground, and repeats a bunch of times a second. I cannot see the bluetooth module from my PC unless I tie down the MCU's reset line.
Problem solved by uploading program right after plugging in. This had me freaked!