I've got a Nexus One on Android 2.2 and also tried it on 2.1 and that pairs up like a charm.. no text reader of course.

Also tried out the Sony Ericsson Xperia on Android 1.6 and that worked okay as well - again no text reader. Also tried out the BlackBerry 9700 with no problems. All on 3 UK. When the Bluetooth connects it shows up as '3' in the display.

The Hero has had a few ROM upgrades - tried updating yours via this site? htc.com/uk/supportdownloadlist.aspx?p_id=283&act=sd&cat=all