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1) You need jacketed bluewire, not just jacketed wire. Plain old jacketed wire is only applicable for redstone signaling, not transmitting blutricity.
2) Once you have the jacketed bluewire, you need to place both the blue alloy wire and the jacketed bluewire in the same space. That's how they "bridge". If it's done correctly you'll see them obviously connect.
3) When you want to ask a question on something you aren't sure, the place to post it isn't in Mod Pack Bugs, in fact that's the last place for "I'm not sure what's up with this" stuff (Mod Pack Bugs is "I have an obvious issue running against how the game should work and here's how I produce it" stuff). I have moved this to Mod Discussion as it's a RedPower2 question. You could also, with a simple question like this, make use of this thread where one-off questions tend to get asked/answered.
1) Thank you for your help! None of the tutorials I've seen mentioned this for whatever reason, I'll give it a go.
2) Yeah I found that but obviously given the wrong wires it just wouldn't connect so I placed it next to the blue alloy for the sake of the snapshot.
3) I had no idea if I was doing it wrong or it was a bug and a quick flick through the main topics didn't seem to match the "I'm a noob please help" category so I just shoved it in there. Thanks for moving it correctly for me and others.