I tried Tollef Fog Heen's solution, and it sort of works. Initially, I didn't empty out /var/lib/bluetooth/ because pairing was working perfectly for me (I copied the link key from a Dapper install.) My only problem was with ISCAN not being enabled by default.
I added "discovto 0;" to the device section of /etc/bluetooth/hcid.conf and and restarted bluetooth. ISCAN was still off. Then I emptied /var/lib/bluetooth/ and tried again. This time ISCAN was enabled. Then I commented out the "discovto 0;" line and restarted bluetooth. Predictably, ISCAN was off. When I uncommented out that line and restarted, ISCAN failed to come on. The only difference between the two cases was the ISCAN worked if /var/lib/bluetooth/*/config/ had "mode discoverable" and didn't work if it had "mode connectable". So, as far as as I can see, the problem is this. If the "discovto 0" line is present, and /var/lib/bluetooth/*/config contains "mode discoverable", then ISCAN is enabled. If the "discovto 0" line is absent, the the "config" file is changed to contain "mode connectable" and ISCAN is disabled. If "discovto 0" is added again, the config file isn't changed back to "mode discoverable". I was able to restore the contents of /var/lib/bluetooth from a Dapper install and get it to work by adding "discovto 0;" to /etc/bluetooth/hcid.conf and changing /var/lib/bluetooth/*/config to "mode discoverable". After this ISCAN (and PSCAN) is enabled by default. I still have problems actually connecting though. I use bluetooth for a PAN and at both ends the pand says "Connection failed. File exists(17)". -- Computer isn't discoverable https://launchpad.net/bugs/59222 -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs