Originally Posted by Tank ....what else does Bluetooth do!

Well you can browse other peoples phones and look at all their images, sounds, movies.. etc.!.. And easily just transfer any items you want, this can be done through pairing two devices. Although some phones like Motorolas don't require the person to accept and some don't allow this service..
You can send messages (and contacts) to other mobiles, also known as 'Bluejacking'. Basically you can transfer most* multimedia items between other bluetooth enabled mobiles. Which is a very handy tool for images, sounds, funny movies etc.
As mentioned you can synchronise your phone with your computer, and create backups of contacts etc. You can use your phone as a remote, with certain software/hardware (although this feature is already built into the mobile..It can be expanded with 'Sony-Ericsson' hardware.)
*
some are restricted due to copyright, for example if you download from your operators wap page..