Defective atmega328?

I have been ripping my hair off with a combination of
2x UNO
2x XBEEshields
2x Series1 Xbees with whip-antenna.

I can make a simple "write 1 to serial and led lights up on other arduino"

So the other UNO with xbee works just fine. And the other UNO works too as without uC.

If i have uC in its place on UNO it works fine without XBEE. But when i place XBEE on its shield, it starts to blink pin13led.
And as you can see the led doesnt blink when i power it without the xbee. So is this a defective atmega328 or?

code: void setup(){Serial.begin(9600);}void loop(){ Serial.print("1"); d - Pastebin.com

Xbee installed, 3 blinks. Without xbee its not blinking like it should. 3 times when booting up. Sketch works just fine without xbee. With xbee pc cant find arduino.

If you can attach to your Arduino with the USB cable and load something into it it is working. What program is loaded into your Arduino? Are it and the XBee unit interacting with each other causing your perceived problem? Did you make any changes to the XBee board? what pins does the XBee board use?