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I have a Palm with Bluetooth. I've successfully synced many time with the USB cradle, but when I try to use bluetooth get the error message on the Palm "port is in use by another application".
Had this often. It is a generic message that appears when the Palm can't communicate with the Mac for some reason.
I found that the following sequence of things on the Mac usually does the trick:
Disable Palm Hotsync
Switch off bluetooth on the Mac
Switch on bluetooth on the mac
Enable Palm Hotsync
Sync
I used to do this often but as 10.2.3 will only communicate with one device simultaneously over bluetooth (as opposed to 10.2.1 which would talk to at least two) I went back to using a cable.