NOTE: Though this tutorial concerns the Cingular 8525, the same general procedure will work with many other Windows Mobile handsets that feature the "Wireless Modem" connection utility or the DUN (Dial-Up Networking) Bluetooth profile. Check with your wireless service provider or product literature for handset compatibility.
Step 1: Bluetooth Pairing, Setting Up a Partnership
In order for the Cingular 8525 to be used as a Bluetooth dial-up modem, you must first pair your Windows PC with the Cingular 8525. Make sure the Cingular 8525's Bluetooth is powered on and that the unit is in discoverable mode:

Next, open your PC's Bluetooth software utility and search for nearby devices. When the Cingular 8525 appears, select it and click Next:

Pair your Pocket PC and Windows PC. Enter a PIN code if necessary (this is a code of your own choosing verifying the connection from both ends; using anything you like, but keep it short, e.g. 1234). When the Services menu appears, select Dial-Up Networking, then click the Finish button:

Don't worry about configuring the connection just yet. Your Windows PC may install some drivers for the Bluetooth modem connection. Allow the process to complete.
Step 2: Configure Your Bluetooth Modem
Your new Bluetooth modem connection has been added to the Connect To subsection of the Start Menu (you can also view the new connection in the Network Connections menu by clicking Show All Connections or right-clicking My Network Places and choosing Properties):

Click the new connection. The following screen will appear:

You'll need to enter the Username and Password later, but first click the Properties button. The Properties menu is where you configure the connection to interface with your wireless service provider, or ISP. First, under the General tab, click the Configure button:

In this menu, you'll need to raise the maximum modem speed. Raise it to at least 460000bps (bits per second). Also enable Hardware Flow Control and Modem Error Control. Click OK:

Back in the Properties menu, enter the phone number for your dial-up ISP. If you're connecting to the Cingular Wireless data network, enter following phone number: *99#

Click OK. You're finished with the Properties menu.
You're now back at the Connect screen. The dial-up number for your ISP, or Cingular's data network (*99#), should now appear in the Dial field near the bottom of the screen. Enter the Username and Password for your ISP. If you're using the Cingular Wireless data network, the settings must be entered as as follows:
Username: WAP@CINGULARGPRS.COM
Password: CINGULAR1
Save the information for later use. Click Dial to connect to the Internet.

You're done!
Step 3: Using the Connection
Whenever you want to connect to the Internet using the Cingular 8525 Bluetooth Modem, just click Start, Connect To and Cingular 8525 Bluetooth (or your given title, perhaps Bluetooth Modem):

To disconnect from the Cingular 8525's Internet connection, right-click on the device and select Disconnect.
You can also connect to, disconnect from and manage the connection from inside Network Connections:
Final Thoughts
The screenshots shown above reflect the Bluetooth software on our primary Windows PC. Your Bluetooth interface may look different.
The speed of your Internet connection with the Cingular 8525 will vary depending on your signal strength, the type of network Cingular Wireless has deployed in your area, etc. You'll also need a data plan from Cingular in order to use the handset as a dial-up modem when connecting to the Cingular (now AT&T) wireless data network.
If you want to dial into another ISP, you can follow the same method shown above, but when the time comes to enter the connection name, username, password, etc., enter the settings provided by your ISP.
As mentioned earlier, the Cingular 8525 can be used as a USB modem as well, which may result in better performance, depending on your system. Bluetooth speed depends on the type of Bluetooth supported by your Windows Mobile device and your Windows PC.