Here's an update:
I did get the BLE shield with BlueGiga module working by following the instructions and using the sketch per my previous post. Not sure what was happening before. My setup is tinyduino+tinyusb+ble_bluegiga module, powered from the USB download board. I uploaded the sketch to the tinyduino, then on my android phone went to the bluetooth icon, deselected, then selected it and it brought up the bluetooth devices screen, hit the SCAN on my phone and it found "My Arduino ...." with a number in the .... I selected the My Arduino ... and it paired. The LED blink sequence changes from once a second to a couple times a second. bottom line, it works on pairing. I would imagine the iPhone has a similar mechanism for pairing.