The ATmega328 microcontroller supplied with the kit has a specially modified version of the Arduino bootloader pre-programmed into it.
Arduino usually has a LED wired to Digital pin 13, but in Nanode, digital 13 is in almost constant use as the SPI Clock.
So in the Nanode bootloader, the LED flashing function has been altered so that it flashes the red LED which is wired to digital pin 6.
If all is well with your Nanode board, the Red LED should start fl;ashing about 2 seconds after the power (from USB or FTDI cable) has been applied.
If it does not flash, check for faults such as missing soldered joints or the LED incorrectly inserted.
First you need to download and install the EtherShield library from GitHub
Make sure you have Arduino 0021 or better still 0022 installed.
(Remove any previous version of Ethershield library - as this causes code compilation problems).