Go to start, settings, network and dialup connections, choose "make a new connection".
From the network connection wizzard click "next"
Click on "Accept incomming connections" and click "next"
Mark the "connection cable between two computers COM X" where COM X is the COM port for serial bluetooth connections (as described in first procedure).
Highlight the "connection cable between two computers COMX" and click "properties"
Change the port speed to "115200" and flowcontrol to "HARDWARE"
Click "OK", "Next"
Check "Do not allow virtual private connections" then click "Next"
The "Allowed Users" screen comes up, here you create a new one or check an existing one
Click "Next", the "Networking components" screens comes up make sure "Internet protocol TCP/IP" is checked and highlighted. Click "properties"
The following settings will work for the Incoming TCP/IP properties window:
Allow callers to access my local area network: checked
Assign TCP/IP addresses automatically using DHCP server: checked (you can uncheck this and enter a range of ip address to be assigned to your palm automatically)
Allow calling computer to specify its own ip address: checked
Click "OK" then "NEXT" then name the connection and click "finish"