Bluetooth is a new technology for Wireless Personal Area Networks (WPANs). It intends to eliminate the need of wires and connectors between a variety of devices, like PCs and their peripherals, walkmans and their earphones, etc. Bluetooth provides robust and secure wireless radio communication of both data and voice, even when the devices are not within line-of-sight. Bluetooth employs the 2.4 GHz ISM band, sharing the same band with the Wireless LAN (WLAN) implementing the IEEE 802.11 series standard. While WLANs and WPANs are complementary rather than competing technologies, the likelihood of mutual interference may occur unexpectedly, which may impact the performance of either severely. In this paper, we propose a Bluetooth channel state dependent data segmentation and reassembly (CSD-SAR) scheme and a queue state dependent priority (QSD-PR) scheduling policy. The CSD-SAR maintains a receiving frequency table to predict channel conditions and selects the best packet type and packet...