Bluetooth tethering Android to iPhone

Hi All,
I am very confused atm. My iPhone 4 says it has Internet Tethering (Settings > General > Network > Internet Tethering > On) via Bluetooth (Settings > General > Bluetooth > On).
1) Does this mean I can share my data plan with my Android phone? (A Dell Streak.)
2) When I activate Bluetooth on my Android phone (Settings > Wireless & Network settings > Bluetooth > turn on > Bluetooth Settings > Discoverable > turn on) I can both iPhone and Streak to see each other; I get the dialog saying confirm that number xx appears on the other devices screen and press the button to confirm that; but thats it. From then on both devices say Connected but not paired. What else do I need to do?
3) A lot of posts I see on the Mac forums say that your provider (currently Virgin Australia) must support tethering. Does that cover this use? How do I know if my supplier is stopping tethering from working?
Thanks for any assistance!
Rob

iPhone 4, Dell Streak (Android phone) Windows XP Pro