[iphone] How to use bluetooth to connect two iPhone?

Check out the BeamIt open source project. It will connect via bluetooth and WIFI (although it claims it does not do WIFI) and I have verified that it works well in my projects. It will allow peer to peer contact easily.

As for multiple connections, it is possible, but you will have to edit the BeamIt source code to make it possible. I suggest reading the GameKit programming guide