Bluesmirf not working at all - but responds to $$$

I have had this bluesmirf gold lying around for a while and decided to use it in a project.

I have the CTS and RTS pins tied and I am using a sparkfun fdti usb to rs232 converter.

The TXD on the bluesmirf is tied to the RXD on the converter

The RXD on the bluesmirf is tied to the TXD on the converter

The power is hooked up correctly

I have two puTTY windows, one connected via bluetooth to the bluesmirf, another connected via converter to the bluesmirf.

Nothing that I send from one of the terminals gets sent to the other, and the only thing that gets any sort of action is putting the bluesmirf in command mode via bluetooth, trying it via converter (wired) does not work.

What is wrong? Is the bluesmirf broken? It looks as if the txd and rxd pins on the bluesmirf dont do anything.

Bump?

Bump again?