getting error while uploading when ethernet shield is attached

I bought ethernet Shield today and connected it to Arduino Uno, now when I try to upldoad I get the following error, however if I remove the shield from the UNO it works fine.

Sketch uses 10,486 bytes (32%) of program storage space. Maximum is 32,256 bytes.
Global variables use 661 bytes (32%) of dynamic memory, leaving 1,387 bytes for local variables. Maximum is 2,048 bytes.
avrdude: stk500_recv(): programmer is not responding
avrdude: stk500_getsync() attempt 1 of 10: not in sync: resp=0x00
avrdude: stk500_recv(): programmer is not responding
avrdude: stk500_getsync() attempt 2 of 10: not in sync: resp=0x00
avrdude: stk500_recv(): programmer is not responding
avrdude: stk500_getsync() attempt 3 of 10: not in sync: resp=0x00
avrdude: stk500_recv(): programmer is not responding
avrdude: stk500_getsync() attempt 4 of 10: not in sync: resp=0x00
avrdude: stk500_recv(): programmer is not responding
avrdude: stk500_getsync() attempt 5 of 10: not in sync: resp=0x00
avrdude: stk500_recv(): programmer is not responding
avrdude: stk500_getsync() attempt 6 of 10: not in sync: resp=0x00
avrdude: stk500_recv(): programmer is not responding
avrdude: stk500_getsync() attempt 7 of 10: not in sync: resp=0x00
avrdude: stk500_recv(): programmer is not responding
avrdude: stk500_getsync() attempt 8 of 10: not in sync: resp=0x00
avrdude: stk500_recv(): programmer is not responding
avrdude: stk500_getsync() attempt 9 of 10: not in sync: resp=0x00
avrdude: stk500_recv(): programmer is not responding
avrdude: stk500_getsync() attempt 10 of 10: not in sync: resp=0x00

Ethernet is not plugged in

Is it something wrong with he ethernet shield ? Ethernet is not plugged in but even when i plug in the ethernet wire the indicators at Jack does not lit up

This has been seen a few times and it is usually caused by some of the pins used for the shield using the pins that the USB needs
OR
A fault on the Ethernet shield often caused by bad soldering
OR
Even on some shields the shield touching the grounded USB port (quality insulation tape fixes that one PDQ).

Easiest way is to program the board WITHOUT the shield and then unplug it and put the shield back on and test it.