Arduino + PIR sensor not working ???

Hi there,

im trying to hook up the PIR sensor to the arduino and i know its supposed to be really simple but i cant seem to get it to work.

I'm using the code from here and i have a backup sensor so i know its probably not hardware defect?

http://www.arduino.cc/playground/Code/PIRsense

The sensor cant seem to detect any motion in some cases and other times, it seem to be detecting too much from the excessively blinking LED.

Below are the photos of my set up

http://img827.imageshack.us/i/p1270030.jpg/

http://img207.imageshack.us/i/p1270031.jpg/

And this is where i got my PIR sensor. http://www.pololu.com/catalog/product/1635

Any help will be appreciated! :)