Strange bluetooth bug on iPhone 4S

The iPhone is capable of pairing with the MacBook Pro for tethering ONLY.

Stedman

http://docs.info.apple.com/article.html?path=Keynote/5.0/en/kyntc6bf6d11.html

http://support.apple.com/kb/HT3325

Scroll to the bottom of the above link, where you will find: I've highlighted the important part.

Using Keynote Remote with Bluetooth

When a Wi-Fi connection is unavailable you can use Keynote Remote with Bluetooth to control your Keynote slideshow from one iOS device to another (iPad, iPhone, iPod touch). However, slides may take longer to appear on Keynote Remote when connected via Bluetooth. You cannot use Keynote Remote via Bluetooth with a Mac.

The following steps use Keynote Remote on an iPhone to control a Keynote presentation on an iPad via Bluetooth.

1. iPhone: Go to Settings > General > Bluetooth and turn Bluetooth ON.
2. iPad: Go to Settings > General > Bluetooth and turn Bluetooth ON.
3. iPad: Open a Keynote presentation.
4. iPhone: Open the Keynote Remote app. If you have previously paired your iPhone or iPad, you can immediately begin to control your slideshow from your iPhone by tapping Play Slideshow. If this is the first time pairing with these iOS devices, refer to the steps in "Linking Keynote Remote to Another iOS Device," above.
   
   Note: If your iPhone displays the message "No connection available. Both devices must be connected to a Wi-Fi network or have Bluetooth turned on," continue with the steps above because you may still be able to use Keynote Remote with Bluetooth.

Can I tether my iphone 4s ios 5 to use the internet connection from my MBP Lion via Bluetooth?

If I understand what you are asking you want the iPhone to use the MBP's Internet connection, rather than the MBP using the iPhone's Internet connection.

If the MBP has a wired Internet connection then you can configure WiFi Internet sharing on it (Go to Sharing in OS X Preferences). You cannot share the connection through BlueTooth, and also cannot share it if the MBP is connected to the Internet wirelessly. But if the MBP is connected wirelessly why can't you connect the iPhone through the same wireless network?

I could if i wanted to buy access to another device... Can I create a wifi ad-hoc, distributing wifi from another source?

There are several ways, but all of them require a wired connection to something. I use an Airport Express with a wired Internet connection to it. I've also used a cellular USB stick with my MBA and ad hoc Internet connection sharing to my iPhone.

Thanks for the help! Looks like I'll be buying a wifi plan for my phone.