A more general answer would be:

Bluetooth is a wireless data transmission method designed to operate up to ranges of about 30 metres. It's relatively low speed (I think it goes up to 1.4Mbits/sec, correct me if I'm wrong) and it's designed to form small networks of devices that communicate between themselves. So your Palm Pilot, mobile phone, handsfree car kit, laptop, camera and whatever else can all talk together without wires, and without a great deal of driver installation, proprietary interfaces or tearing of hair. It's not designed to replace WiFi, (F|A)M Radio, ethernet, or a phone line.

It has a reasonable amount of encryption and authentication, so it's quite difficult for someone else to either snoop or impost on 'your' network, but this is not really highly secure. This has caused some security mavens to bag it, and I've seen someone ringing Bluetooth's death knells this month, but these criticisms seem to me to miss the point of the standard - a cheap, easy, small wireless network. I don't think anyone's going to find interlopers making unseen calls on their mobile phone... just don't transmit any State secrets on it.

That's my prediction, anyway. Hope this helps,

Paul

P.S. Why, of all the 'multimedia' products that Sony released, have they only implemented Bluetooth on one video camera - surely the thing that least needs it? No digital cameras, no memory stick MP3 players, which surely are much more likely to find Bluetooth connectivity useful. If there's one thing that is going to kill Bluetooth, it's manufacturers making hamfisted, botched uses of it. Grrrrrrrr... *mutters to self* I must not fly into an insane rage, I must not fly into an insane rage, I must not...