I used to play with openliveview (firmware) with my first device. I don't remember exactly what have done with that device (and in what order). But it doesn't seem to matter. It worked quite easily with LiveViewServer.py. Firstly I had to pair it with my N900 as a new device in bluetooth settings. Then start LiveViewServer.py , restart Liveview device and then press the right (in sense of not left ) button.
Pairing mode is the rotating arrow, connecting mode is when the dots are wandering (BT icon of N900 should become blue then).
When the clip of plastic holder of my first device broke, I used my second one and it worked that way out of the box. So no firmware tinkering etc.
Did you install python-bluetooth? Don't know what happens if that is missing.