make sure your bluetooth is paired correctly in windows(seems like it is).
your BT doesnt default to 9600 baud:
The on-board serial communication between the bluetooth module and the Arduino sketch (running on the ATmega168) needs to be at 115200 baud (i.e. call Serial.begin(115200) in your setup() function). Communication between the bluetooth module and the computer can be at any baud rate. from http://arduino.cc/en/Guide/ArduinoBT
everything else seems OK