I found some more information. I am not crazy it is a "feature" of Live search. According to Microsoft this feature works on "select devices"
http://blogs.msdn.com/livesearch/
"Bluetooth headset support Now you can use the speech recognition feature with your Bluetooth headset (available on select devices). "
When I installed the software on my Apache something triggered it to enable audio over Bluetooth. The Touch doesn't trigger the same thing. I decided to Cook a newer ROM for my Touch hoping this would trigger the function to work but to no avail.
Does anyone out there have Live Search installed? If you press Speak does it turn on your BT Headset? If so what ROM are you running?