Bluetooth bee transmission garbled

The topic is related to this hardware:

http://iteadstudio.com/store/index.php?main_page=product_info&cPath=7&products_id=350

I had a lot of problem connecting to it. The connection will remain for very short period and then is dropped and I have to connect again. While connected, I tested sending from my phone to the bee. Everything I sent was successfully received on the serial monitor (I removed atmega so it won't interfere). I know arduino IDE has a problem with its 9600 baud rate and I used termite terminal software.

But when I send from PC to phone, things get garbled too often (like couple times in 10 trials). So I was confused maybe the bee's transmission is too weak? Then I did a test sending a paragraph over from PC to phone using the bee. The last word was "principle." and my received message has instead "princitic princitic princitic principle.principle."

So I guess my question is: does bluetooth has any error checking mechanism to find out something is wrong and request a resend?
Then why does princi*** show up so many times if it is determined to be garbled and many resent seem to have occurred?

Thank you!

Verdict is out!

I tested bluetooth connection between a PC USB bluetooth dongle and the itead bluetooth bee. No problem occurred in transmitting in either direction.

Then I also downloaded a Bluetooth terminal program from android market and tested out my phone with the bee. So far so good. I set up the bee on my pc in the living room and was able to send to it from bed room or office so the connection broken problem seems to go away too.

Final verdict? iTeadstudio bluetooth bee is working (plus their bee shield), their test software is full of crap. It drops connections like crazy, garbled input strings to phone and has to be force stopped from time to time. Maybe they should stick to making hardware. If they didn't make the crappy test software, I'd have downloaded a phone terminal already and be happier since yesterday. LOL