In an interest to keep my own problems separate from any tutorials, my error message is:
bluetoothd[2935]: Encryption failed: Permission denied(0x5)

I am trying to figure out why...

EDIT:
OK, I was able to get it to work once with the stuff above, still trying to get it to work more consistently, hopefully from the gui...

I would appreciate any advice. Its a shame all of that info above is very well hidden in the forum and on the internet...