The simplest way to do cable replacement using 2 BlueSnap dongles is to use the switch settings.

Set switch 2 and 3 on ONE of the devices (the one you want to be the master). Set switch 2 on the other device you want to be the SLAVE. Power them both up and they should pair and connect. It's that easy. (Note: This assumes BlueSnaps are in default settings).

To speed up following connections, turn OFF switch 2 on both devices so they don't perform discovery and pairing each time. Leave switch 3 ON the master so it will auto connect.

Note: After using BlueSnap USB with SerialMagic, it must be reset to factory defaults (or disable DTR mode) to make it master using Switch 2 & 3 as shown below, the easier option for this case is to put switch 2 & 3 ON for the BlueSnap XP, and switch 2 on for BlueSnap USB.

Advanced method for Bluetooth cable replacement using BlueSnap Bluetooth adapters. Click Here

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