Arduino Uno + Bluetooth Connectivity Issue

I recorded a screenshare video this morning to show in a bit more detail some of the configuration I mention above.
Please let me know your thoughts.
http://michaelwittmer.com/wordpress/?cat=82

Also, I did uninstall all the drivers per dxw00d's suggestion. Issue still exists.

uk350,
How do I initiate the pairing?
My device shows listed in control panel and when I detected the bt device, I entered a pairing code which was gracefully accepted, but how to I initiate a "pair" once the device is installed?