Any luck yet? When I installed the usb serial driver on my computer, com 10 was default. What happens when you plug the Arduino in the usb?
Do you have the FTDi driver installed properly?, i donot think so because if you had that it would have shown USB SERIAL DEVICE inplace of COM3 number and the BLINK will happen irrespective of diver's installed because BLINK example comes already loaded when you buy the NEW Arduino so probably check out your FTDi FT232RL USB to Serial converter driver.Secondly, What message you get in the Arduino IDE when the download fail's, is the program compiling successfully ?
There are some additional troubleshooting suggestions here: http://www.arduino.cc/en/Guide/Troubleshooting#upload
Try telling it that you have an Uno...(thought process: "when i go to the serial monitor, it shows stuff while the TX led blinks" ought not happen on a previously-unprogrammed Duemilanove. Duemilanoves should no longer be available from "normal" dealers. Perhaps you have a duemilanove board that has a 328 with the Uno bootloader on it instead (in which case it might respond as an "uno".))Can't hurt.What "stuff" is shown in the serial monitor, anyway? And at what speed? That could be a clue...
Analog values: 490397333274283310 Analog values: 290283276242252224 Analog values: 281268256231243223 Analog values: 279263249227238220 Analog values: 278260246225236220
Try thisPlug in the ArduinoChoose the correct serial portOpen the serial monitorConnect a wire between pins 0 and 1Hold down the reset button while you type something in the serial monitor and press send.Do you see what you typed in the serial monitor?