This project combined with Linux-on-Android can enable a complete Arduino development environment on Android. This app solves a problem that most Android devices do not have USB ports to enable normal programming of Arduino devices. To further complicate the the issue the Bluetooth serial port is not shared from Android to Linux-on-Android. To work around these issues this app runs as a service which connects to Arduino over Bluetooth and to the avrdude programmer over a TCP socket. The serial and TCP data are mirrored by the Serial Mirror app. As a result the Serial Mirror app is also useful for devices which do not have root access. After starting the Serial Mirror app you can connect via a telnet app to send and receive data from the Bluetooth device.
The Bluesmirf Bluetooth module is available from Sparkfun.
Source code is available at https://github.com/jeffboody/spp-mirror