BT3021 access point with TDK usb dongle

I am currently having a problem getting my new BT3021 access point
(tecom) to work. The device appears in bluetooth neighbourhood with an
IP address allocated by my network. However, when I try to pair the
device, I get authentication failure and also, when I run LOCATE, no
device appears in the list. Does anyone have any experience with this
config. Is there perhaps a compatibility issue with this device and my
TDK dongle? Anyone any ideas before I assign bluetooth to the bin.

Thanks

George