The Bluetooth stack in Windows XP SP2 is designed to help prevent a Bluetooth device from connecting until you explicitly configure that device. This requirement helps prevent unauthorized access to your computer through a Bluetooth device.
Additionally, you must connect a wired keyboard and mouse to the computer to install Windows when Windows XP SP2 is integrated with the Windows XP installation media. (This installation is also known as a slipstream service pack installation.) When you install Windows XP by integrating the Windows XP SP2 service pack with the Windows XP installation media, Windows does not detect a Bluetooth mouse or a Bluetooth keyboard during the graphical user interface (GUI) mode part of the Setup program. Therefore, you cannot complete the Windows installation or log on to Windows by using a Bluetooth mouse or a Bluetooth keyboard.
REFERENCES
For additional information, click the following article number to view the article in the Microsoft Knowledge Base:
870882
Bluetooth device cannot connect to your Windows XP Service Pack 2-based computer