iPhone Developer MeDevil in January announced it was developing iBluetooth that enable users to transfer files from your iPhone with other Bluetooth devices. He had also published a video showing an iPhone running the application sending and receiving of files between a Mac and a Sony Ericsson handset. 

The good news is that MeDevil has finally released iBluetooth making it the first application for the iPhone jailbroken iPhone to allow users to transfer files from your iPhone via Bluetooth, a feature that has been the lack of iPhone since its launch.

The iPhone comes with Bluetooth 2.0 + EDR (short for Enhanced Data Rate) built-in. But it only supports the Bluetooth Headset Profile and Bluetooth Hands-free Profile 1.5 which is a major limitation.

The most commonly requested applications in the Bluetooth stack by iPhone users are A2DP wireless stereo support and the ability to transfer files to other bluetooth devices.

iBluetooth will allow users to transfer any file via Bluetooth to other devices. It also has a built-in file viewer which will allow users to send any file on their iPhone.

Here are some of the screenshots of iBluetooth's user interface (courtesy iSpazio):

iBluetooth is available for 3.99 euros and you can install it on your jailbroken iPhone via Cydia. medevil hopes to bring features such as A2DP, Serial Port (needed for bluetooth GPS) etc in the future.

Another group of iPhone developers are also working on a project whose ultimate goal is to get all the missing Bluetooth profiles working on the iPhone. They had released an iPhone app called SweetTooth couple of months back that demonstrated the work they had done on unlocking the full capability of iPhone's Bluetooth.