It will pair, but you need a resident program called a Driver installed in the Droid for it be usable. This driver converts the BT signals coming from the keyboard into letters and symbols on your application software - such as Documents to Go Word or Excel or a Notepad app or SMS window..etc..
I have one too that I've had since my Treo 700P days. I did a little research and found this....
PLEASE NOTE: Due to changes in the market, the Stowaway keyboards and Bluetooth mouse were discontinued. The intellectual property was sold and the products are no longer supported by iGo. No new drivers have been developed since early 2007---------
Stowaway was bought out by Igo - the makers of power plugs. Here is their website...
Either you can learn how to write a driver or wait till someone else does or pay someone...tis the beauty of open source software.