BlueSMiRF + Duemilanove question

I'm sure this has been mentioned before and I've been digging through many threads here and elsewhere but can't find a straight answer.

I'm simply trying to test if the BlueSMiRF I got is working with the Duemilanove.

I currently have the BlueSMiRF connected to 3.3V (not 5V) and have TX to RX on ARduino, and vice versa, and CTS and RTS connected together. And finally GND to GND.

When I simply give the power via USB, I don't see any LEDs flash on the Bluetooth modem. So I'm kinda worried that the BlueSMiRF I got may be busted (Tried to reset, but have been unsuccessful since I only have two hands)

I have the following generic serial test code (was found in many places, but I slightly changed it), which works without the BlueSMiRF.

char val;         // variable to receive data from the serial port
int ledpin = 13;  // LED connected to pin 48 (on-board LED)

void setup() {
  pinMode(ledpin, OUTPUT);  // pin 48 (on-board LED) as OUTPUT
  Serial.begin(9600);          // start serial communication at 9600bps

void loop() {
  if( Serial.available() )         // if data is available to read
    val =;          // read it and store it in 'val'

  if( val == 'H' )                     // if 'H' was received
    digitalWrite(ledpin, HIGH);  // turn ON the LED
  else { 
    digitalWrite(ledpin, LOW);   // otherwise turn it OFF
  delay(100);                         // wait 100ms for next reading

So is there any related thread that pinpoints to simple SW to test the bluetooth-serial system? Or just the generic wire connection that I might have wrong?