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Maximum achievable data rate of current Bluetooth system is 723.2 kbps (DH5, asymmetric). In this paper, we apply three modulation types (BPSK, QPSK, 8PSK) to Bluetooth system in order to increase data rate. Furthermore, we evaluate the performance of packet and modulation type selection scheme based on channel quality estimation for Bluetooth evolution systems, and we propose the rules for packet and modulation type selection in Bluetooth evolution systems. As a result, our study shows that by selecting packet and modulation type adaptively based on channel quality estimation, Bluetooth evolution systems can maximize the data throughput while minimizing transmission delay at any given channel quality. Moreover, we discuss the channel estimation algorithms for Bluetooth.