Have you checked "connect to device for internet access"?
I'm having no issues tethering to my HTC desire since upgrading to 4.2, but I did notice that i have to check this box every time that I connect via Bluetooth now.
I did some other tests now.
I've started the classic Angry Birds and let the background music run over my bluetooth speaker. Everything was running fine. But as soon as there is any traffic over wifi (started a big download) the Bluetooth is stuttering like crazy. So it doesn't matter if the audio source comes from the cloud or the device itself, but as soon as wifi gets active blutooth goes crazy and begins to stutter. This is really weird.
I am trying to get in touch with the BT stack guys on the Android team. Something is bad, BAD wrong.
This.. Bluetooth tethering is working for me, but I gotta check the box every time too. A dev is working with me that has the Bluetooth Auto Connect app, he sent me a test build earlier but I haven't had a chance to try it, been busy at work. I'll post if that fixes it for me.
I tether to my Galaxy Note running 4.1.2 BTW.
I have tested tested tunein, Google Music and Youtube with no problems over my Sony MW 600 Stereo Bluetooth Headset(Bt 2.1+EDR).
I'd love to help, but the only far fetched advise I could give you is to change your wlan channel, and try again.
I did some other tests now.
I've started the classic Angry Birds and let the background music run over my bluetooth speaker. Everything was running fine. But as soon as there is any traffic over wifi (started a big download) the Bluetooth is stuttering like crazy. So it doesn't matter if the audio source comes from the cloud or the device itself, but as soon as wifi gets active blutooth goes crazy and begins to stutter. This is really weird.
I just ran mine through an extended test, 4 hours of an audio-book via Audible on N7 to my Plantronics m1100, no issues. I did the manual upgrade to 4.2, if that helps anyone. I restarted my N7 after it upgraded only once so far, did not clear or reset anything before, during, or after.I am testing this right now.
I am able to get audio from Audible book loaded on N7 to my Plantronic M1100, no problems. Headset is 2.1 EDR
Also, I have just paired my N7 with my work Lenovo X230 Laptop (Win 7) via BT, Audio is being played through with no issue and on screen controls on laptop are working. Laptop has a 4.0 chip built in.
Edit: Just installed Tunein radio, working on BT Headset and laptop still.