You don't check for result codes from the bluetooth shield. Have you checked that the TX/RX lines are connected the right way? If you put the jumpers in the opposite position the bluetooth shield will never heard anything from the Arduino and the same is true for the other direction.
Have you tried connecting the bluetooth shield to your PC (putting the jumpers to 0 and 1) and sending the AT commands from a serial terminal programm? What response do you get from the bluetooth module on the shield if you send the AT commands?