I have the exact same issue as isethruu62. The Incredible just sits there and says its pairing. My HTC Touch Pro 2 (Windows) worked with the XLink perfectly until I replaced it with the Incredible this week. I also just updated the XLink firmware, but I'm getting the same result.
When I first turn on bluetooth and tell the Incredible to seach for devices, it finds the XLink and brings up the screen to enter the pairing code. As soon as I enter the first zero "0", that screen disappears, and I get the error "paired but not connected".
Any ideas? Thanks.