Logitech's latest firmware update is causing some issues, not only with IR2BTs but with many IR devices. It can cause problems when trying to pair your IR2BT as well as other problems such as multiple key presses, etc. You can read the details in this thread. Or below is the current update from the thread. I'd recommend you not update your Logitech software/firmware until they get it fixed.

Just an update - this is definitely a Logitech problem. We tested with a Harmony 880 that had old firmware and all was good. We then upgraded the 880 firmware and the LED on the IR2BT starting exhibiting the "pulsing". We looked at the 880's IR stream on a scope and the remote is sending out bursts of three correctly spaced commands separated by a 66ms gap. That gap is causing the key to be dropped and reasserted. We're guessing that this will cause an issue with any IR device expecting a solid IR code stream. Let's hope Logitech gets this fixed quickly.

There are also several posts in the Logitech/Harmony forum confirming some kind of problem
http://forums.logitech.com/logitech/board/message?board.id=general_remotes&thread.id=14612
http://forums.logitech.com/logitech/board/message?board.id=general_remotes&thread.id=14590


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Bruce Mitchell
www.ir2bt.com