Found a manual that's a bit easier to read here http://iteadstudio.com/Downloadfile/BluetoothHC05.pdf
and as you say it states you pull pin 34 (PIO11) to VCC (3.3V) and then power on.
How to set the mode to server (master):
1. Connect PIO11 to high level.
2. Power on, module into command state.
3. Using baud rate 38400, sent the “AT+ROLE=1\r\n” to module, with “OK\r\n”
means setting successes.
4. Connect the PIO11 to low level, repower the module, the module work as server
Is your FTDI serial cable set for 3.3V or 5V