HC-05 Not working properly

I have been trying to get my hc-05 connected to my laptop. Im using the tutorial in order to figure out if the hc-05 is working but once i get to the connection step by starting up the process code the module starts blinking twice every two seconds. Even when i do this the led does not light up. The code on the arduino is

char val; // variable to receive data from the serial port
int ledpin = 8; // LED connected to pin 48 (on-board LED)

void setup() {

  pinMode(ledpin, OUTPUT);  // pin 48 (on-board LED) as OUTPUT
  Serial.begin(38400);       // start serial communication at 9600bps
}

void loop() {

  if( Serial.available() )       // if data is available to read
  {
    val = Serial.read();         // read it and store it in 'val'
  }
  if( val == 'H' )               // if 'H' was received
  {
    digitalWrite(ledpin, HIGH);  // turn ON the LED
  } else { 
    digitalWrite(ledpin, LOW);   // otherwise turn it OFF
  }
  delay(100);                    // wait 100ms for next reading
}

The code on process 3 is

//import class to set up serial connection with wiring board
import processing.serial.*;

Serial port;

//button setup
color currentcolor;
RectButton rect1, rect2;
boolean locked = false;
void setup() {

  //set up window
  size(200, 200);
  color baseColor = color(102, 102, 102);
  currentcolor = baseColor;
  // List all the available serial ports in the output pane. 
  // You will need to choose the port that the Wiring board is 
  // connected to from this list. The first port in the list is 
  // port #0 and the third port in the list is port #2. 
  println(Serial.list()); 
  // Open the port that the Wiring board is connected to (in this case 1
  // which is the second open port in the array) 
  // Make sure to open the port at the same speed Wiring is using (9600bps) 
  port = new Serial(this, Serial.list()[0], 38400);
  // Define and create rectangle button #1
  int x = 30;
  int y = 100;
  int size = 50;
  color buttoncolor = color(153, 102, 102);
  color highlight = color(102, 51, 51); 
  rect1 = new RectButton(x, y, size, buttoncolor, highlight);
  // Define and create rectangle button #2
  x = 90;
  y = 100; 
  size = 50;
  buttoncolor = color(153, 153, 153);
  highlight = color(102, 102, 102); 
  rect2 = new RectButton(x, y, size, buttoncolor, highlight);
}

void draw() {

  background(currentcolor);
  stroke(255);
  update(mouseX, mouseY);
  rect1.display();
  rect2.display();
}

void update(int x, int y) {

  if(locked == false) {
    rect1.update();
    rect2.update();
  } else {
    locked = false;
  }
  //Turn LED on and off if buttons pressed where
  //H = on (high) and L = off (low)
  if(mousePressed) {
    if(rect1.pressed()) {            //ON button
      currentcolor = rect1.basecolor;
      port.write('H');
    } else if(rect2.pressed()) {    //OFF button
      currentcolor = rect2.basecolor;
      port.write('L');
    }
  }
}

class Button {

  int x, y;
  int size;
  color basecolor, highlightcolor;
  color currentcolor;
  boolean over = false;
  boolean pressed = false;   
  void update() 
  {
    if(over()) {
      currentcolor = highlightcolor;
    } else {
      currentcolor = basecolor;
    }
  }
  boolean pressed() 
  {
    if(over) {
      locked = true;
      return true;
    } else {
      locked = false;
      return false;
    }    
  }
  boolean over() 
  { 
    return true; 
  }
  void display() 
  { 
  }
}

class RectButton extends Button {

  RectButton(int ix, int iy, int isize, color icolor, color ihighlight) 
  {
    x = ix;
    y = iy;
    size = isize;
    basecolor = icolor;
    highlightcolor = ihighlight;
    currentcolor = basecolor;
  }
  boolean over() 
  {
    if( overRect(x, y, size, size) ) {
      over = true;
      return true;
    } else {
      over = false;
      return false;
    }
  }
  void display() 
  {
    stroke(255);
    fill(currentcolor);
    rect(x, y, size, size);
  }
}

boolean overRect(int x, int y, int width, int height) {

  if (mouseX >= x && mouseX <= x+width && 
      mouseY >= y && mouseY <= y+height) {
    return true;
  } else {
    return false;
  }
}

It may be just the wiring - Bluetooth<>Arduino. You can prove that code by leaving Arduino connected PC and sending the data from serial monitor.

You might find the following background notes useful.

http://homepages.ihug.com.au/~npyner/Arduino/GUIDE_2BT.pdf
http://homepages.ihug.com.au/~npyner/Arduino/BT_2_WAY.ino