Windows 7: Bluetooth device connects but does not pair

Setup:
Sony Vaio VPCSA290S Laptop purchased 1 year ago. Windows 7 SP1
Bluetooth device: Foxconn-T77H114-BCM2070 drivers up to date (to the best of my knowledge and hours of searching)

Problem:
I recently purchased a Bose Soundlink bluetooth speaker. I cannot get it to successfully pair with my laptop. When I add the device it installs 3 additional drivers, adds itself to my bluetooth devices but will not work (ie make noise). The speaker does not complete the pairing like it does with my phone (it beeps and an indicator light appears). When I right click the soundlink icon in bluetooth devices and select the control header i get a "the device fails to initialize..." message. (perhaps i am not meant to be able to access the device in this manner i don't know). I have re-installed the drivers for my internal bluetooth device twice. I have tried every combination of steps from the Bose troubleshooting "guide" in their manual and on their website (resetting the device, resetting the bluetooth memory, distance from laptop, other bluetooth devices turned off, etc). I have searched the internets for hours now and am unable to find a similar situation (though sometimes i miss things right under my nose). I have a feeling it is software related, as I have checked device manager, bluetooth settings over and over and it says that my bluetooth radio is functioning fine.



I think i have covered all the variables that i have noticed here. Help and suggestions are greatly appreciated.

Thanks