You don’t need to pair your phones together to do the transfer. It should just work. The phone you want to send to goes into receive mode by tapping on the double-iPhone icon at the top-left of the Forms tab. Then the other phone goes into send mode by tapping on the record or form you want to send and then tapping on the action menu and tapping on “Beam Record” or “Beam Form”.
Then the sending iPhone should see the name of the receiving iPhone in the list. Tap the name of the iPhone in the list and then the receiving iPhone should get an alert asking if they want to receive the form. Tap OK and then the form should be transferred.
If you’re having trouble with Bluetooth, try turning off Bluetooth and see if it works over WiFi. But you’d both have to be on the same WiFi network for that to happen.
That’s odd. Your friend’s iPhone should show up as long as you both have Bluetooth enabled. Does your friend’s Bluetooth work for other services? Perhaps there’s something wrong with his. Or, try rebooting (full power off, then on) the phones to see if that helps.