Got it!
I went to the Apple store and couldn't connect the Jawbone to any iPhone. So, I went to the Jawbone website and discovered that once it has been paired with a device it must manually be put back into pairing mode. If you don't, devices looking for it (iPhone) won't discover it.
Jawbone said to put it back into pairing mode I needed to hold down the noise assassin button and talk button at the same time for three seconds (must do this with it off).
Reset it and wham....iPhone found it in about 1 sec. Done.
Cut and paste from the Jawbone site....
(If this is not the first time the Jawbone is being paired, turn off the New Jawbone. Then, hold down the NoiseAssassin™ button and the Talk button at the same time for 3 seconds until the LED indicator light flashes red and white alternately. This will put the Jawbone into Pairing Mode.)
http://us.jawbone.com/knowledgebase.aspx
click the link that says "New Jawbone Pairing..." and it is in that short page.