diff --git a/TODO.txt b/TODO.txt
index 3842ff31a..6bcfd01b8 100644
--- a/TODO.txt
+++ b/TODO.txt
@@ -3,8 +3,6 @@
 Last milestone reached: BTdaemon automatically started by launchd on Mac and iPhone
 
 NEXT:
-- deal with Apple stack
-  - detect if it is running and return appropriate error events
 - create a SpringBoardAccess MobileSubstrate Extension
   - put MobileSubstrate header and lib into 3rdparty folder
   - in SpringBoard hook, start datagram Unix domain or mach port server
@@ -15,6 +13,10 @@ NEXT:
 - create script to build APT package
 - create pgp key and sign APT package
 - provide test version at http://btstack.ringwald.ch
+- decide on error reporting
+  - command_status_event with custom errors
+  - hci open failed 
+  - btstack error
 == Release Version 0.1
 - implement rest of L2CAP state machine
   - incoming connections
diff --git a/example/test.c b/example/test.c
index 356bec8a0..d9767c0cc 100644
--- a/example/test.c
+++ b/example/test.c
@@ -36,6 +36,12 @@ void data_handler(uint8_t *packet, uint16_t size){
 }
 
 void event_handler(uint8_t *packet, uint16_t size){
+	// handle HCI init failure
+	if (packet[0] == HCI_EVENT_POWERON_FAILED){
+		printf("HCI Init failed - make sure you have turned off Bluetooth in the System Settings\n");
+		exit(1);
+	}
+
     // bt stack activated, get started - set local name
     if (packet[0] == HCI_EVENT_BTSTACK_WORKING ||
 	   (packet[0] == HCI_EVENT_BTSTACK_STATE && packet[2] == HCI_STATE_WORKING)) {
diff --git a/src/bt_control_iphone.c b/src/bt_control_iphone.c
index 6a8cf8c4d..b1a8e89ad 100644
--- a/src/bt_control_iphone.c
+++ b/src/bt_control_iphone.c
@@ -63,7 +63,7 @@ static int iphone_valid(void *config){
 	char * machine = get_machine_name();
 	if (!strncmp("iPhone",  machine, strlen("iPhone" ))) return 1;
 	if (!strncmp("iPod2,1", machine, strlen("iPod2,1"))) return 1;
-	if (!strncmp("iPod3,1", machine, strlen("iPod2,1"))) return 1;
+	if (!strncmp("iPod3,1", machine, strlen("iPod3,1"))) return 1;
 	return 0;
 }
 
@@ -249,12 +249,13 @@ static int iphone_write_initscript (void *config, int output){
 }
 
 static int iphone_on (void *config){
+    int err = 0;
 #if 0
     // use tmp file for testing
     int output = open("/tmp/bt.init", O_WRONLY | O_CREAT | O_TRUNC);
     iphone_write_initscript(config, output);
     close(output);
-    system ("BlueTool < /tmp/bt.init");
+    err = system ("BlueTool < /tmp/bt.init");
 #else
     // modify original script on the fly
     FILE * outputFile = popen("BlueTool", "r+");
@@ -270,12 +271,12 @@ static int iphone_on (void *config){
         if (singlechar == EOF) break;
         printf("%c", singlechar);
     };
-    pclose(outputFile);
+    err = pclose(outputFile);
         
 #endif
     // if we sleep for about 3 seconds, we miss a strage packet... but we don't care
     // sleep(3); 
-    return 0;
+    return err;
 }
 
 static int iphone_off (void *config){
diff --git a/src/hci.c b/src/hci.c
index af0b665e5..e7d5cbdcb 100644
--- a/src/hci.c
+++ b/src/hci.c
@@ -265,19 +265,28 @@ void hci_init(hci_transport_t *transport, void *config, bt_control_t *control){
 int hci_power_control(HCI_POWER_MODE power_mode){
     if (power_mode == HCI_POWER_ON && hci_stack.state == HCI_STATE_OFF) {
         
+        // power on
+        int err = hci_stack.control->on(hci_stack.config);
+        if (err){
+            fprintf(stderr, "POWER_ON failed");
+            hci_emit_hci_open_failed();
+            return err;
+        }
+        
+        // open low-level device
+        err = hci_stack.hci_transport->open(hci_stack.config);
+        if (err){
+            fprintf(stderr, "HCI_INIT failed, turning Bluetooth off again");
+            hci_stack.control->off(hci_stack.config);
+            hci_emit_hci_open_failed();
+            return err;
+        }
+        
         // set up state machine
         hci_stack.num_cmd_packets = 1; // assume that one cmd can be sent
         hci_stack.state = HCI_STATE_INITIALIZING;
         hci_stack.substate = 0;
         
-        // power on
-        hci_stack.control->on(hci_stack.config);
-        
-        // open low-level device
-        hci_stack.hci_transport->open(hci_stack.config);
-        
-        // create internal event
-        
     } else if (power_mode == HCI_POWER_OFF && hci_stack.state == HCI_STATE_WORKING){
         
         // close low-level device
@@ -290,6 +299,7 @@ int hci_power_control(HCI_POWER_MODE power_mode){
         hci_stack.state = HCI_STATE_OFF;
     }
     
+    // create internal event
 	hci_emit_state();
     
 	// trigger next/first action
@@ -436,3 +446,11 @@ void hci_emit_nr_connections_changed(){
     hci_dump_packet( HCI_EVENT_PACKET, 0, event, len);
     hci_stack.event_packet_handler(event, len);
 }
+
+void hci_emit_hci_open_failed(){
+    uint8_t len = 1; 
+    uint8_t event[len];
+    event[0] = HCI_EVENT_POWERON_FAILED;
+    hci_dump_packet( HCI_EVENT_PACKET, 0, event, len);
+    hci_stack.event_packet_handler(event, len);
+}
diff --git a/src/hci.h b/src/hci.h
index 7e06022d1..74f7a7087 100644
--- a/src/hci.h
+++ b/src/hci.h
@@ -122,3 +122,4 @@ void hci_emit_state();
 void hci_emit_connection_complete(hci_connection_t *conn);
 void hci_emit_l2cap_check_timeout(hci_connection_t *conn);
 void hci_emit_nr_connections_changed();
+void hci_emit_hci_open_failed();
diff --git a/src/hci_cmds.h b/src/hci_cmds.h
index 69052a23e..e3f6aab46 100644
--- a/src/hci_cmds.h
+++ b/src/hci_cmds.h
@@ -96,6 +96,9 @@
 // data: event(8), len(8), nr hci connections
 #define HCI_EVENT_NR_CONNECTIONS_CHANGED                   0x85
 
+// data: none
+#define HCI_EVENT_POWERON_FAILED                           0x86
+
 // data: event(8)
 #define DAEMON_CONNECTION_CLOSED                           0xc0