The sneezing man button on the steering wheel cannot initiate pairing. That can only be done with a ULF and with the pairing button on the eject box in the center console. Also, the "ACTIVATE PHONE" message means that your car is looking for a phone or is not paired to a phone. The "BLUETOOTH PAIRING" message is what you see when the car is in pairing mode, and then only if you have a ULF BT module. The TCU module will not display the PAIRING message.

Based on the model year of your car, it is more likely that you have a TCU type of telephone module than a ULF module. Though, there is no guarantee that anything is installed. The first thing you will need to do is locate the TCU or ULF module, and read the part number. If you can post the part number, then we can help you understand what you have. The TCU/ULF module is located in the side compartment of the trunk, above the CD changer, nav computer (if you have nav), and amplifier. It will be on the left side, as you stand behind the car looking forward.

__________________
SOLD
2000 E38 750iL Highline Edition, Upgraded with the lastest 2006 X5 Electronics
MKIV Navigation, 16:9 Display, Bluetooth, TV/Video with Backup Camera, Sirius, and Aux Input