To test whether the buggy is working or not, you can use the buggyprog.exe tool that comes with Flowcode, the BuggyProg.exe tool is located in the Tools section of the Flowcode installation folder.

C:\Program Files\Matrix Multimedia\Flowcode V4\Tools (Flowcode V4)
C:\Program Files\Flowcode\V5\Tools (Flowcode V5)

C:\Program Files\Flowcode 6\tools (Flowcode V6)

1) Load up BuggyProg.exe and have it running, so it says "Buggy Not Found".
2) Have the Formula Flowcode switch in the off position (closest to the edge of the circuit board).
3) Have the USB plugged in
4) Flip the switch to the "on" position
5) BuggyProg should detect the buggy and say "Buggy Version 1.1", "Ready" and two lights should be flashing alternatively on the buggy (RD0 and RD1).

This will check if the Buggy has been detected and is working.