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