It is because Palm needs to release a firmware update for the Treo 700p. Plenty of people have been complaining re: Treo 700p's bluetooth problem....
Check it out at
www.treocentral.com and find their forum re: bluetooth
My old VZW Treo 650 with the latest firmware had better support than my current VZW Treo 700p.
Usually, Palm releases firmware updates for the Treo around October, but I hope it addresses this problem.
BTW, my wife has a VZW Motorola RAZR V3c and it pairs and works as advertised with the BMW Bluetooth (Visteon).