Is this why you think there is a problem, because the GPS LED doesn't stay with a constant blue light? I've never paid that close attention to the LED behavior on the GPS unit but I do not recall it ever being a steady blue, even after I just paired it. I know what the manual says but its not up to date, see the updated manual here:
Freedom Mini GPS Manual - Powered By Kayako SupportSuite

The LED always seem to be alternating between 2 colors in my experience, orange for one second to illustrate that the device is communicating with the GPS satellites and it will do this regardless if it is paired with the Mogul or not, and the other color, blue, for the next second or two to show it is on and/or connected to the phone.

Have you actually tried to use the device with a GPS program yet?