How does the Bluetooth peer-to-peer work on the iPod Touch?

[JACKthe182]

I've been using the iPod touch for a LONG... 2 years. I've had the iPod 2nd gen until maybe a month ago, until i traded it in for the 4th gen (yay!)... So yeah, 2 years. And i can't remember when, but when they released the "bluetooth" setting that allows for ipod-to-ipod connectivity, I was really excited. But I never really understood how to work it. like AT ALL. I, at first, just though you turned on the "bluetooth" option, and under devices, well, you could just leave that blank (i know, reaaally stupid). I assumed that as soon as it found the other ipod touch, that would be the device. But I guess that didn't work... (or maybe thats how it worked, but with my friends we just turned it on, and went straight to the game, and were sadly disappointed). So now I want to know - HOW THE HELK DOES IT WORK?! What do you need when it says "devices", and but devices what do you do with the device? like do you use a bluetooth earpiece, and have your's and your friends' ipod sync to that "device", or am i way off? Is it a program you can work on your computer? If you know how it works, then I'd really appreciate the help. I'm usually good with technology (I'm 14-15 years old), but this I am just pathetic with. . . so, please help me! Thanks!