Ok People I have a solution.
1. Download the policy file from the link above. This will remove the locked keypad password on your device, so you don't have to input a password everytime you want to unlock your device keypad. (blank policy.bin file)
2. After speaking with a member from another BB related site this is what he had to say:
"A software tool (called ITpolicy.exe) will create a policy from the human-readable file (policy.inc). I got the tool by downloading it from RIM directly at the following link:
BlackBerry.
It is part of the server. Download the package and you will find these files (ITPolicy.exe, etc) in one of the directory. You will use this to edit the policy.inc to your liking and then generate a policy.bin file.
Then you will load it onto your BB by following the instructions that come in a pdf file (it_policy.pdf) that's also present in the package you have downloaded."
3. Inside the policy the 'split pipe allowed' is set to false. You need to change this to 'True'. Just shift through all the text in the policy and look for:
; Policies that control the behaviour of third party applications on Java-based handhelds. ;
AllowThirdPartyUseSerialPort {policy} = true
AllowExternalConnections {policy} = true
AllowInternalConnections {policy} = true
AllowSplitPipeConnections {policy} = false (YOU MUST change this to true)
DisallowThirdPartyAppDownloads {policy} = false
4. Once you have edited and saved the policy make sure you hit 'generate' from the tool bar menu. NOTE: Make sure you pay attention to where it will place this "policy.bin" file and be sure to put it into your Desktop Manager folder where it will OVERWRITE whatever policy.bin you previously had.
5. Open DM, connect your BB sit back and let device manager do its thing.
If any mods out there stumble upon this thread, I highly recommend putting this in the sticky, as I encountered many people suffering from this experience in my research.
Rich