For anyone with similar issues, upgrading the OS made it worse as the A/V remote function was disabled or "x"ed out when connecting to laptop via bluetooth.
Now, downgraded back to T-Mobile's OS .231 and it is working fine.
Also the fix for the auto dialing is to set the option "Allow Outgoing Calls : Never" of the "paired computer" in BlackBerry.
This allows Windows 7 to still dial a number and connect the phone call to Laptop and allows Audio / AV remote features to work properly.
Not sure what's up with the New OS 5. not working for me at least.