It seems that the hidd daemon is no longer in development. In the bluez sources, it is placed in the "compat" directory, but likely doesn't fully works as expected. At least, I was unable to setup a bluetooth mouse (with automatic reconnection) following this guide. In particular, it recomends:
# Arguments to hidd HIDD_OPTIONS="--connect <enter here your bluetooth mouse address>"
But the connect option is not used by hidd daemon when the -server switch is in place (/etc/rc.d/bluetooth always adds such switch).
The BlueZ wiki is not reachable (not even using Google), the www.bluez.org lacks documentation, the search doesn't returns anything, the mailing list seems not available. Anyway there are plenty of references in the net:
Please keep in mind that whenever hcid or pand or hidd are mentioned it means that instructions are applicable only to bluez3 systems which is deprecated ages ago. Modern bluez4 uses only one daemon - bluetoothd and you are supposed to use dbus api directly to configure it. For pairing from command line use simple-agent script. Openmoko wiki
By the moment, I have prepared a alternate guide using the new method:
And I think that this HOWTO needs at least to clarify that the method is only recomendable for old bluez versions.