Bluetooth is wireless technology, similar to the wireless signal that laptops us to connect to the internet without being "plugged-in" to a network port. Bluetooth has a much shorter range than a typical laptop wireless connection and depending on the class of signal used can communicate over distances between 3-300 feet. Most implementations are class 2 and travels approximately 30 feet.
A typical Bluetooth mobile phone headset, shown here. Bluetooth is used in a variety of different applications including the bluetooth headset shown above. Bluetooth is also used in other hands-free options like car-kits. If you do plan on using a bluetooth headset, be sure and check your cell-phone to make sure it is bluetooth compatible.
List of applications
One of the most popular application for the bluetooth protocol has been in car kits and bluetooth headsets.
Computers that are working in a cramped space can use bluetooth if the bandwidth requirements are minimal.
Computer peripherals such as your keyboard, printer or mouse can also take advantage of the bluetooth protocol.
Synchronization of PDA documents, reminders and appointments.
Bluetooth is also used with medical equipment and GPS receivers
For controls where infrared was traditionally used.
Bluetooth is also used in wireless gaming mostly with hand controllers in Nintendo and other big name gaming companies.