Desktop Discovers phone paired to computer but...

[voltaire64]

running win7 64bit with latest Desktop Manager official release. Phone is a 9700 running 5.0.0.862. The phone is paired with my laptop, initially there were two drivers that were missing prompting a yellow ! below the phone. Figured that out by installed rims drivers manually under device manager/ports. That solved the problem and the phone works fine with the computer.
However, with desktop manager it is a nightmare. With Desktop manager open I click on "Add a Bluetooth Device" and it searches for less than 5 seconds for a paired device then quits. I then click the "add" option and make sure on the device in BT options the discovery field is set to yes and a unique name is given to my device. I click okay and what appears in the Add a BT enabled device after the flashlight animation is my phone "Dave" and id numbers underneath. When I click "ok" it reverts back to the box with the message "searching for paired device in range" then turns up nothing. My phone is no longer recognized. I have to add it, it finds it and then again turns up nothing when searching for paired device within range.
Any ideas on this, it's driving me nuts. Any help appreciated.