I'm not having pariring issues. My issue comes when I try to listen to music.
I have an iPhone 3G. Prior to the update to 4.2.1, I was able to listen to music through my bluetooth headset. This worked well, as I could listen to music while driving and not bother others in the car.
Now, after installing 4.2.1, I still don't have problems pairing new devices... I DO have a problem listening to music. I get a new icon at the bottom of the music display, where the volume control normally resides... it looks like a box with an arrow (or something) coming out of it. The phone apparently thinks its sending music to the headset, but nothing comes through. It disconnects the device I have plugged into the dock connector, so no music comes through that connection either. I have to manually force the phone to re-establish music through the dock connector, or turn off the bluetooth device, before music flows through the dock connector again.
It seems that everyone is having PAIRING issues. Mine is not a pairing issue, rather a bluetooth functionality problem. I assume it's the same as everyone else, I'm just afraid the terminology may be wrong.
Any help would be greatly appreciated.