It is connected to the Arduino and draws power from there, I have also connected the TX/RX to the Arduino but I am not testing that part yet just sending commands to the bluetooth. I pair the device with the mac using bluetooth, connect via Zterm but after that I cannot do anything.
I was reading more about it and I found out that you cannot send AT commands while connected via bluetooth and I think that is my problem. I got rid of the 255 loop and now I just connect but then nothing happens. I will try and program the Ardunio and send commands via the serial interface and see what output I get.