Arduino with RS232 connection

Thanks for your advice. I haven't gotten out the mineral spirits yet but am trying something else and could use some help.

I have rec'd the RS232 shield that i referenced before (see link below).

http://www.nkcelectronics.com/RS232-to-TTL-converter-board-DTE-with-Male-DB9-33V-to-5V_p_369.html

I have hooked it up as follows to the Uno Board using jumper cables:
VCC to Power
Ground to Ground
Uno pin 2 to RS232 Tx
Uno pin 3 to RS232 Rx

I'm trying to test it out just to make sure that it's communicating properly. I've used the code from the following link, with the only change being (near the top) :
byte rx = 2;
byte tx = 3;

I upload the code to the Uno, and I open up the Serial Terminal. When I press the reset button on the Uno, the led on the Uno 13 flashes a bit, and the led on the RS232 for Tx goes off for a split second (it usually is just staying on). Nothing happens to the Rx light on the RS232. Also, nothing happens in the Serial Terminal (it should say "hi").

When i type something into the terminal (such as "abcdefg") and press send, nothing happens in the terminal (it should type "ABCDEFG"). The rx flashes on the Uno, but nothing changes on the RS232.

Do you have any suggestions? Do you believe that I have I wired this correctly?

Thanks!