When I try to turn on my headset (BT200) my phone asks if I will accept the connection. After I say "Yes" it causes a hard restart. Anyone ever seen this? Any fix known?

Had the exact same issue with my BB 7290, running 3.8 or 4.0 didn't fix it either. I just figured the BT200 wasn't compatible with BT BB's. I ended up purchasing a BT250 which works fine with my BB 7290.

Ah so I'm out of luck...what a waste.

Pretty much unless you can return it? I though it was the device itself, same issue with my wife's 7100 and a co-workers 7290. I know, it sucks!

RIM has admitted there is a problem with this combination. There *may* be a fix at some point - I wouldn't hold your breath though.