Comment 5 for bug 781556

Bluetooth discovery fails because with the Ralink chip the bluetooth radio is off by default, it need's to be switched on after each boot. This can be done with the command: sudo bccmd psset -s 0x0000 0x028c 0x0001

Afterwards restart bluetooth: sudo /etc/init.d/bluetooth restart

You can add this command to /etc/init.d/bluetooth (suggestion is to put it after the log_daemon_msg command) to switch the radio on automatically.

Information found on https://bugs.meego.com/show_bug.cgi?id=3498

(In my case this fix only worked after modifying /etc/init.d/bluetooth and a reboot).