Arduino BT, Snow Leopard: Can't upload sketches

Hello, I'm brand new to Arduino so please forgive my ignorance. I've got a Macbook running 10.6.8, Arduino tools 1.0. I have an Arduino BT (docs.cc). I can get the Mac to see the Arduino over Bluetooth, and I have them paired.

I loaded the "Blink" sketch. Board is set to "Arduino BT w / ATmega128". Port is set to "/dev/tty.ARDUINOBT-BluetoothSeri", which is the value shown in the Bluetooth Preferences. When I press "Upload" in Arduino, I the terminal prints

Binary sketch size: 1026 bytes (of a 14336 byte maximum)
avrdude: ser_open(): can't open device "/dev/tty.ARDUINOBT-BluetoothSeri": Resource busy
ioctl("TIOCMGET"): Inappropriate ioctl for device

From a bit of Googling I see lots of people with this issue on 10.5 with earlier versions of the Arduino software, but those problems seem to have been cleared up.

Also possibly of note: the Arduino seems to drop it's bluetooth connection pretty regularly. When it starts up, it will show as connected, but after ~1m Bluetooth says it's Not Connected. If I go to "Edit Serial Ports" it will reconnect. Pressing the "reset" button on the ArduinoBT doesn't seem to have any effect on any of this.

Any suggestions appreciated!

scanfield:
I have an Arduino BT (docs.cc).
...
Board is set to "Arduino BT w / ATmega128".

Unless you purchased the board a long time ago and just now got around to it, you should be selecting "ATmega328" and not "ATmega168". There is no ATmega128.

scanfield:
Pressing the "reset" button on the ArduinoBT doesn't seem to have any effect on any of this.

The reset button only resets the ATmega328. It does not do anything with the BT device on the board.

You may be right, but I'm not sure. Here's a link to the product I bought http://www.amazon.com/dp/B005TX3QP4/ref=pe_175190_21431760_C1_cs_sce_3p_dp_1. It says that it's "based on ATmega168" but it's possible that the product description just hasn't been updated? It wasn't clear to me that there was a distinction based on http://arduino.cc/en/Main/Hardware.

I experimented with the ATmega328 option a little, without any luck -- but I can try some more tomorrow (I left the board at my office).

I bought the ArduinoBT because I want to use a phone to drive the Arduino's actions, should I have just bought a shield like http://iteadstudio.com/store/index.php?main_page=product_info&products_id=307 and an Arduino Uno or Mega2560?

-Steve

Just to keep this going: trying with the "Arduino BT w/ ATmega328" setting in the IDE doesn't change anything.

Is there a lower level interface so I can see if the Arduino "works"?

Since you bought from the Seller "Mp3Car Store" and they are not an authorized reseller, my guess is that you bought a (bad) clone. I'd suggest returning it.