During the WHOLE time while you are in pairing process, the Bluetooth LED light on the receiver will not change.
The Bluetooth LED light will change to blinking ONLY when you have a GPS software connected to the receiver, otherwise it will stay as SOLID and waiting for connection from your phone's GPS software.
Please see the instruction here for pairing the GPS receiver: http://www.buygpsnow.com/support/issue_view.asp?ID=3038
and you then connect your GPS software with the GPS receiver or download a trial version of BeeLineGPS: http://www.visualgps.net/BeeLineGPS/default.htm