thank you, everyone for your replies!!
I'm glad to hear i'm not the only one who is having some trouble with this!
I have tried putting a wee pad that she had 'gently used' on top of the grass peepad to get the scent and idea of what she was supposed to be using it for going but that didn't seem to work.
I am going to try and get the scent spray from PetSmart this week -- hopefully that will entice her. I am also going to try to remove the plastic container on the bottom to see if that helps any. I'd hate to throw $50 out the window..
Ps. i've attached a picture of Lola and her grass bed.