Talking SMS reader ?
 

Is there any way I could get new SMS messages to be read to me via speaker / BT headset ?

ms voice command will do this nicely.

How do you make Voice Command read SMS messages? Also, is there an app that lets you speak your text messages into a bluetooth headset and it types them for you?

That was my direction too...

While driving this would be perfect so that I don't have to fiddle with my fingers to type messages...

especially since new york is going to make texting while driving illegal, so they may pull you over if they see your phone even in your hand

To get VC to read you text and email messages, go into the VC settings. Select Messaging and options. Uncheck the High Priority Only checkbox. On the main settings page you can also select Notifications and choose if you only want stuff read through BT or not.

Does this work with a certain threaded messaging app?