Need help with iphone's bluetooth

i have an iphone 16gb it says bluetooth on but when i search for devices with my other phone it doesnt catch it. and the bluetooth isnt set as hidden it is shown to all and i still cant catch it.

thanks haidar

I think you can't connect to other phones via bluetooth on the iphone. because apple wants to protect their itunes songs copy right. so they don't want to transfer songs to other phones via bluetooth. someone please correct me if I'm wrong!!!!