This seems obvious, but make sure you are using the version 1 test firmware with the version 1 SSC. There is no test software for the V2 SSC, and I think the V3 test firmware for modified V3 SSCs was been pulled from the site pending a break for RJ and the revealing of the V4 mod.
Blinking once is really odd behavior...
Just to be sure, the wires on the side of the node with the chip (bigger black square) is the input. If the data and ground are swapped, sometimes you get some odd behavior on the first node, but nothing after that. This is also true if you hook the SSC to the output end of the wire.
What size output resistor (the one closest to where the smart string connects to the SSC) do you have? If you don't know know how to read the color codes, just post the colors... or a good picture...
How long is the wire between the SSC and the first node?