Can anybody tell me how to find out which pairing technique phone used while connecting to other device?
I have a Nexus S(Android 2.3.3) and a BT device(Bluetooth2.
You can either sniff the Bluetooth traffic or take a log to figure out which technique is being used. On a Nexus-S $adb shell hcidump -XVt will show you the log. If I/O capabiltiies are being exchanged than its Bluetooth 2.1 pairing.
Another option is to enable bluetoothd log in init.herring.rc file and you can figure out which pairing method is used.
Its most definitely Bluetooth 2.1 pairing in your case and the problem is elsewhere.