Bang and Panic Cards
From the rules describing the "Draw a card" symbol:


  If “any player”
  is specified (see that symbol),
  then you can draw a random
  card from his hand, or you can
  choose one in play in front of him.
  If no player is specified, draw the top
  card of the deck. In any case, cards
  drawn are added to your hand.


The rules don't explicitly clarify what happens when you're drawing from a player in range 1 rather than "any player", but it's reasonable to assume that the same rule applies to those two very similar cases. So yes you can take a blue card that's already in play and put it in your hand. And once it's in your hand, it's yours just like any other card so yes you can use that same card yourself.