Dude. I love you.
I have been struggling with my Pantech Breakout for the past 9 hours. I wasn't able to get my shiny new IOIO to work via bluetooth or USB cable. The bluetooth wouldn't detect. I gave up on that and started in on the USB. Apparently the Breakout has a USB hub which makes it incompatible with the IOIO... I came across your thread by searching Google for "ioio can't pair bluetooth". I installed Bluetooth Class Zero and rebooted as you did. Worked like a charm! I'm paired, and now can move on with learning.
You saved me a trip to the Verizon store. I was going to return this phone and get a different one... One that is on 'the list of working phones'. For that, I seriously thank you. (I despise the Verizon store!)