Those pictures are good, unfortunately, I don't see anything wrong in them. A M2 fault in the unmodified demo program means that the Arduino is reading low voltage on pin 12. The shield has a pullup resistor between the net connected to pin 12 and VDD. Lets try to use your multimeter to verify things are connected correctly on the shield:
Start by disconnecting the power and separating the shield from the motors, power supply and the Arduino. With your multimeter, you can check continuity between the chip pins (the rightmost arrows in the picture above) and the M2EN A=B jumper (the middle arrow on the bottom). Also, you can check that the pullup resistor (the leftmost arrow) is connected by measuring the resistance between M2EN A=B and VDD is 4.7K and you can check that the resistance between pin 12 (the top arrow) and M2EN A=B should be 1k Ohm.