Before we can communciate with another Bluetooth device, we have to add them as a "partner", and they have to authorize us to connect with them. Since we are controlling both the Palm and the desktop in this case, this is easy. If, for example, you wanted to connect your Palm with the cellphone of "the person across the table", it probably wouldn't be possible, unless that person explicitly allowed your Palm to connect to his phone.
So let's do that.. link up the Palm and the desktop, and give them both access to each other.