I don't do this every day but didn't have this problem the last time.
I tried to connect my nexus 7 both w/bluetooth and wireless but neither worked. Bluetooth instructs to enter a passkey somewhere but there is nothing visible on the computer or my device where to do this.
Wireless, which I never had a problem with, now tells me "Ping failed" (IP 172.16.2.42)
Does the 2.5 update have anything to do with this?
Unlikely. The IP address you posted doesn't seem like a local IP. Make sure that the device is connected to the correct local network.
About the Bluetooth, usually you should see a notification message that you can click on to get more information. It however depends on your Windows Bluetooth software.
The reason I mentioned it was because I had no device or emulator opened to which it would install. Previously the compilation would stop before completion and say there was nothing to install to. This was using F5 to compile. It surprised me because it said it had installed to emulator 5554 but no emulator was open. Not critical but wondered why.
You nailed it. I do have Bluestacks installed so that makes sense since the application appears there also. Even though some of the controls overlap, it is very convenient. Thanks for your astuteness.