The solution is not perfect, but I have restarted my computer a few time and my blue tooth keyboard still worked nicely.
We are going to compile the latest bluez 4.81, with out the regression that have dread the ubuntu blue tooth since version 9.4(that when I got my beautiful keyboard)
Installing some dependency
sudo aptitude install build-essential bison zlib1g-dev zlib1g
Visit http://www.gtk.org/download-linux.html for the latest glib
wget http://ftp.gnome.org/pub/gnome/sources/glib/2.26/glib-2.26.1.tar.gz cd /glib-2.26.1/ ./configure make sudo make install
Visit http://www.bluez.org for the latest drivers
wget http://www.kernel.org/pub/linux/bluetooth/bluez-4.81.tar.gz tar -xvf bluez*.tar.gz cd bluez-4.81 ./configure make sudo make installRestart your computer and it should work beautifully.
At this point I was feeling pretty happy so I play around abit and screw it up :D
If you are still experiencing problem try the following:
Check hciconfig in console
hciconfig
hci0: Type: BR/EDR Bus: USB BD Address: 00:1F:81:00:02:50 ACL MTU: 1021:4 SCO MTU: 180:1 UP RUNNING PSCAN RX bytes:80028 acl:4395 sco:0 events:52 errors:0 TX bytes:617 acl:12 sco:0 commands:28 errors:0
If you see "UP RUNNING PSCAN", then you can start adding new devices and start using your blue tooth.
Otherwise do the following:
Bring down the interface
sudo hciconfig hci0 down
Bring up the interface
sudo hciconfig hci0 upBring the interface up can cause some problems.
If the interface keep timing out pull the blue tooth out and plug it back in.
If hciconfig complain about rfkill do the following
sudo rfkill unblock bluetoothGo back and check
Hopefully ubuntu team integrate the new bluez fix as soon as possible.
Good Luck.