WiFi & Bluetooth SIMULTANEOUSLY?

To stream Pandora Radio to my home stereo, I have a Bluetooth, (Motorola DC800), device. It works fine from my computer to the device, and pairs without a hitch.

On the iPad, when I turn on bluetooth, it sees the DC800. It even connected once, but it never paired to it. (Blue light not pulsing)

I then noticed that the WiFi was turned off! I never turned it off.

Is there an issue with the iPad, in which WiFi and Bluetooth can not function at the same time?

This is frustrating.