Yes I have it set up as trusted, the two pair just fine. It actually tries to connect to the network and that is when I get the "no carrier detected".

I have not set up a separate location for BT DUN in Network Preferences. If I understand it correctly I had however set up a separate BT Modem under BB 8300. I am not certain about whether it turned off all other ports though, never thought about that, not sure how to do that. I did turn off my Airport and it still came up with the same error.