I think the problem is fixed. The GUI seems to load ok.
I will put instructions to fix the issue below, (please note these have been put together from various posts)
Firstly, downgrade your kernel to 3.6.11 by running rpi-update 8234d5148aded657760e9ecd622f324d140ae891
in Terminal. ( Must run as root) You can use sudo -s to give temporary root. Then do a reboot by doing sudo reboot. You can run hciconfig -a to see if bluetooth is up, the line where it used to say DOWN for me should now say UP RUNNING PSCAN.
If you cant open bluetooth managerlike me, run sudo nano /etc/group in Terminal. Find the lp group line, mine was lp
7: and add pi to the end of the line. So now it should be lp
7:pi. Save the file as group.new. Then back in Terminal, run sudo cp group.new /etc/group. Make sure to do a reboot after, run sudo reboot. Next time you log in, bluetooth manager should open!
I am still learning the world of Raspberry Pi, apologies if I double post.
I've learnt one thing about Raspberry Pi: You fix an issue, but then you discover another.