With regards to lights on the mini GPS there are 3 lights and they blink in different ways depending on what is going on.

Blue light = Bluetooth Status
Orange Light = Satellite Status
Red Light = Battery Status

Blue light
Flashing once per second = Bluetooth ready to be paired/connected
Flashing twice per second = Bluetooth connected
Light on steady = This happens if the device is not paired. it means it is not longer in discovery mode and needs to be turned on/off to go back to flashing once per second.

Orange light
Light on steady = Searching for GPS signal
Flashing = Satellite signal connected.

Red light
Comes on when battery is being charged. Turns off when battery is fully charged.

Pink/Purple lights. There are no pink or purple lights but if you are looking at the unit from a distance sometimes both the blue and red lights flash at the same time with can give a pink/purple glow. If you look closer you should be able to see the separate LED's and their blink patterns.

Batman31 - It sounds like you paired it correctly. As above both lights will flash when operational and on some devices you may have to select the port it uses (which is the serial port).

Once it is paired you will need to select the GPS source in whatever software you are using. This is done differently for different software but normally it is in the options or settings menu. Google maps on a BlackBerry for example you press the menu button, go to bluetooth GPS and select the GPS unit (SPP S).