Arduino Nano and Bluetooth issue

I used a bluetooth module successfully with the Uno, connecting rx-tx as normal and am able to stream data through bluetooth. However when i connect the Bluetooth module to a Nano that uses the FR232RL chip the bluetooth does not work. The USB works of course to the RS232RL but the bluetooth module will not make a connection although it connected to the same lines on the ATmega328 D0(RX) and D1(TX)
Anyone have an idea why this is? Seems like the FT232RL “holds” the com line.
thanks