Bluetooth has no relation to Warcraft III. Ignore it. The problem should also have no relation to your TCP/IP protocol. It sounds like the error is internal, within the patch file itself.
Try uninstalling Frozen Throne and Warcraft, reinstalling both, and then manually applying patch 1.20 (i.e. download it from the Blizzard site and apply it yourself by running the executable. Also, try using a different web browser to download it - the file may be corrupted due to a dodgy compiling by the browser you're using. Make sure the download is uninterrupted). See if that works instead. The patch file must also be downloaded to the same disk/partition as Warcraft III itself (so you can't install off a memory key).
When I patched Warcraft, I moved from 1.0 to 1.17 to 1.20, and had no errors. If all else fails, try that.
If you can get it working though, you've made a good choice. Warcraft III and Frozen Throne are superb RTSs.
I_F