I've updated my phone android to 2.1 now - Going to try and get it running again later.
I went onto the Ian Hawkins forums and it suggested that Android 1.5 you had to confirm the pairing in the notifications menu as well as pairing it in the settings menu, so maybe that was the problem.
I've updated to 2.1 now anyway - I like some of the extra features I've got now lol!
[EDIT]
Also the Ian Hawkins forum suggested that in the phone menu - seeing Paired but not connected is fine
[/EDIT]
I went onto the Ian Hawkins forums and it suggested that Android 1.5 you had to confirm the pairing in the notifications menu as well as pairing it in the settings menu, so maybe that was the problem.
I've updated to 2.1 now anyway - I like some of the extra features I've got now lol!
[EDIT]
Also the Ian Hawkins forum suggested that in the phone menu - seeing Paired but not connected is fine
[/EDIT]