How do I connect an HPC309a printer to an iMac using bluetooth?

I am trying to connect an HPC309a printer (Model: HP Photosmart C309a series, FW Version: VAx2FN0915AR, Service ID: 20267, Product Number: CC335A) to my iMac (21.5" Mid 2011, OSX Lion 10.7.5, 2.7GHz Intel Core i5, 4 GB 1333 Hz DDR3.

The printer has bluetooth capability, as does the iMac.

The iMac can "see" the printing device, but is says it is not connected. There is some communication since the iMac seems to know what ink levels there are for example in the Printer.

The printer and iMac are in different rooms, so I want to use a wireless connection to print jobs.

The printer was at one time connected using a USB cable, and the iMac seems to still have this connection in its memory, since in the Printer Utility under System Preferences, the "Connection Type" is listed as USB. In this same window, the error message reads "Unable to communicate with the selected device. It may have been turned off, or otherwise disconnected."

In the Printer Setup Menu

From the iMac side:

under the bluetooth icon (info bar - top right corner), bluetooth is "On" and "Discoverable", and the "Photosmart C309a series" is listed in the Device list (along with the bluetooth keyboard and mouse, and trackpad for example). So this makes me believe that there is some link between the iMac and printer.

In the "Network" window under System Preferences, Bluetooth PAN is shown as "Not Connected" and the printer does not appear under the list of Devices that can be connected to. From this same window there is a button called "Set Up Bluetooth Device...". When I click on this another window appears called "Bluetooth Setup Assistant". In that window, the Photosmart C309a series Device appears in the list of devices (it is the only one in the list). When I click on the "Continue" button, another window opens which states "This computer is already paired with "Photosmart C309a series....Do you wish to remove the pairing and set up the device again". I've tried both Cancelling and pressing the Okay button with no success.

Under the HP Utility (version 5.24.2) the printer shows up as the only device with the following info:

Model: Photosmart C309a series

Connection Type: USB Which I think is part of the problem - shouldn't this be "Bluetooth"

Service ID: 20267

FM Version: VAx2FN0915AR

S/N...

Driver Version: HP Inkjet 4 Driver 4.2.2

Product Number: CC335A

On the Printer Side, I've tried sending print job when the printer is asleep as well as woken up and ready. I can send jobs to print, they get added onto the Job List under the Printer but the print jobs remain in queue w/o getting to the printer.

Any help would be greatly appreciated.