Trouble sending code to the ArduinoBT

I have paired the ArduinoBT with my Mac computer. Now I am having trouble sending code to the ArduinoBT does anyone know why ?

I get the following error message:
avrdude: stk500_recv(): programmer is not responding.

I thought the easiest way to explain my approach so far is with a screen grab of my desktop.
Image one shows the Arduino Software running a simple Blink script and the error message, also included in this screen grab is the ‘board’ type and ‘Serial Port’ I have chosen.
Notice the Bluetooth program says the device is paired but isn’t connected. I am not sure at what point the BT program should read as connected, I am guessing once data is being transmitted ?

Image two shows you my very basic setup with my ArduinoBT, a LED in pin13, and being powered by my battery source.