1. When your headphones and BT01 transceiver are successfully paired, the light on your BT01 should be a solid blue when set to OPT (optical connection) or green when set to AUX (audio connection). A flashing light indicated that the BT01 is still looking for a device - check your headphones are on and in range.
2. You should hear 'your headset is connected' when your headphones are turned on and are connected. If your headphones are connected to two devices and both are on, you should hear 'your headset is connected' said twice.