I believe I followed your instructions, but it's not working for me. I have the RN-42 set to MDM mode, and I have connected the RST (RTS-0 on the Bluetooth Mate) to a .1uF cap, which is in turn connected to pin 33 on the RN-42.
Do I need to cut the original trace going to RTS-0 on the Bluetooth Mate board? Looking at the spec sheet I thought they were showing the chip upside down, so I actually soldered to pin 32 first, but I realized my mistake and fixed that. Still no love. Both times everything worked exactly as it always had, as if I hadn't done anything.
Thanks in advance for any ideas you may have. I have been wanting to get this to work for as long as I've had a bluetooth chip for my Arduino. 