There are several threads on installing Bluetooth in the 1012 with Windows 7 starter. I can report SUCCESS!! By gathering information from the various posts, I finally got it done. Here is what I did. It took some planning and time, but I'm a novice and didn't want to break anything.
-Checked my BIOS (F2 on startup) to make sure there is a bluetooth setting, and it said "enabled." It was there, even though there was NOT a bluetooth module installed yet, but I figured (correctly) that my motherboard was set up to take the bluetooth module.
-Got the 365 bluetooth module. I got mine from PC Parts in California (714) 900-3915. It was pricey but I got the module in two days. It is very tiny, like 1/4" wide and 1/2" long, and will "snap" into the connector on the board. It is then fastened with a very tiny screw. I bought a package of laptop repair screws on EBay, and one of them fit. (You can buy the module with a screw, or you may have one that might fit).
-Got a laptop pry tool (spudger) on EBay. I do not see how you can pry off the upper frame with a credit card like some people suggest. I forced my thumbnail down along the edge just enough to insert the spudger--a credit card was not strong enough to lift the plastic.
-Take the laptop apart. I followed instructions I found on a Google search, but BEWARE!! All 1012's are not alike! Mine had three "extra" screws holding down the upper frame--I was trying to pry it off without success until, duh, I noticed the screws. And there are only 5 screws on the bottom of my 1012, not 6 like others. I took some photos, and I'll post the photos and the steps if anyone wants to see them. After you have done it once, it is not hard. Another "beware" is be uber-careful with the power connector plug! The pins are very tiny, and bend easily, so remove and replace very carefully at that step!
-Simply plug the 365 module into the slot. The slot is at the right front corner. You have to lift up some silver cooling tape to see it--it is very tiny and hard to find. Just look for the very small, female plug that mates to the 365. Carefully push down, it will snap in. Insert screws.
-Put it all back together.
-Download the R226746 bluetooth driver module from the Dell web site and install it. It won't work without it!
-Press ALT-F2. A pop-up window with checkmarks will show up. Confirm bluetooth-on, WAN-on, and WWAN-on (I have all three).
Success! It was worth the effort.