Unfortunately Apple broke the ability for us to use Bluetooth as a fallback method of Syncing when Wi-Fi is not available. An Apple Engineer has put in a request for this to be fixed, so let's hope this will be back "on" in the next update of iOS 5.x. We are very sorry for the inconvenience for people using Bluetooth to sync. We will look into seeing if there is any way we can "hack" something to make Bluetooth work, possibly by a option or something.
