A red circle, does it means it's charging? I use my own bluetooth as my headset, although I can't help you there, maybe I can find out why no one will hear you.
Do you Disconnect your headset before you turn off your PS3? If you do then remember, when ever you wanna hook up your headset, just turn it on. Don't make it search for the PS3 or it'll keep disconnecting once it connects. Also, maybe your headset isn't charged up. Try charging it
here's what you need to do to connect it
first remove the mice from the dock and on top of the mic theres a little flap open it and connect the usb into that slot and now go into bluetoot accessories and pair it with your ps3 then it should work as a desktop mic and as a regular mic
if you ust plug it in from the dock it is NOT paired