delay method and crashing sketch

Hi
I installed the latest arduino software (1.6.3) and I am able to upload sketches and run them with some success however methods such as delay seem to cause the sketch to crash? I.e.

void setup() { // Open serial communications and wait for port to open: Serial.begin(9600); }

void loop() {
Serial.println(" Before delay");
delay(1000);
Serial.println(" After delay");
}

Simply prints out
Before delay
Before delay
Before delay

And so on. It appears that whenever I use the “delay” method the sketch appears to crash and the setup method is called again (verified with more println methods in the setup method).
Additionally I noticed that millis method always returns 0.

I am using the following :

Windows 7
Arduino 1.6.3
(tools / board is set to Arduino Uno and tools / Programmer is set to USBTinyISP)
The board is a Sunfounder Uno RS with the ATMega 328p-pu chip

Any help would be appreciated.
Thanks

What is the output of this?:

void loop() {
    Serial.println(millis());
}

Just to get an idea WHEN the reset occurs

0
0
0
0
0í0

repeating

There is certainly nothing wrong with the delay function. Does the "blink" example work without anything connected to the board except USB?

There was nothing connected to the board other than the usb. I bought another arduino kit from adafruit with what appears to be a real arduino board and it works flawlessly. There were many other odd behaviors too so I suspect bad board :frowning: Thanks for your help