Windows Phone 7 supports Bluetooth 2.1  + EDR, and this enhanced version allows for a simplified pairing procedure with Bluetooth devices.

Bluetooth is the popular open wireless protocol for exchanging data over short distances. Windows Phone 7 supports the following Bluetooth user profiles: 

• Advanced Audio Distribution Profile (A2DP 1.2)
• Audio/Video Remote Control Profile (AVRCP 1.0)
• Hands Free Profile (HFP 1.5)
• Headset Profile (HSP 1.1)
• Phone Book Access Profile (PBAP 1.0)

You can pair your phone with a variety of different Bluetooth accessories, such as headsets, car kits, or speakers. Certain Bluetooth devices that do not fully conform to industry-standard Bluetooth protocols may not work properly with your Windows Phone 7 device.

Steps to pair your Bluetooth accessory with a Windows Phone 7 device:

1. On Start, flick left to the App list, and then tap Settings.
2. On the Settings screen, tap Bluetooth.
3. Turn Status to On. This starts a search for any discoverable Bluetooth accessories. Make sure that the accessory you want to pair is turned on so that your phone can discover it.
4. Tap the name of the accessory that you want to pair with your phone.
5. If the accessory requires that you enter a PIN to pair it with your phone, make sure that both the phone and the accessory display the same PIN before tapping Done.

If you do not wish to use a particular connected accessory with your phone in future, tap and hold the name of the accessory in the list, and then tap Delete.

Photo by Krelic