"Bluetooth personal area network (PAN) is a technology that allows you to create an Ethernet network with wireless links between laptops, mobile phones, and handheld devices. You can connect to the following types of Bluetooth enabled devices that work with PAN: a personal area network user (PANU) device, a group ad hoc network (GN) device, or a network access point (NAP) device.
Here is more information about what each of these devices does:
  • PANU devices. Connecting to a Bluetooth enabled PANU device creates an ad hoc network that includes your computer and the device.
  • GN devices. Connecting to a Bluetooth enabled GN device creates an ad hoc network that includes your computer, the GN device, and any other PANU devices that are connected to the same GN device.
  • NAP devices. Connecting to a Bluetooth enabled NAP device allows you to connect your computer to a larger network such as a home network, a corporate network, or the Internet."

-Angelo Lambroschino (Via Microsoft.com)

http://windows.microsoft.com/en-us/windows/what-is-bluetooth-personal-area-network#1TC=windows-7