Tried the workaround listed above "usbcore.autosuspend=0", and am afraid
it didn't work for me. Symptoms are the same, "Connection timed out".
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[Lucid&Karmic] Cambridge Silicon Radio, Bluetooth Dongles do not work
https://bugs.launchpad.net/bugs/460743
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Same issue here. Tried downgrading bluez to 4.32-0ubuntu4, but didn't help.
Adding some more information in case it's useful
System: Ubuntu 9.10
Hardware: Dynamode BT-USB-M2 (Cambridge Silicon Radio)
Symptom: Device is discovered when plugged in, but times out whenever I try to
access it (hcitool