The gpsaddress.txt is located as in c:\Data\gpsaddress.txt. It sounds like you are not running the raccoonloc.py script at all.
When the raccoonloc.py script is run the first time, or if the gpsaddress.txt file is removed, the phone should scan for bluetooth addresses and prompt you a window to select your bluetooth GPS device. Did you see the window?
You don't need to configure anything in your phone to use bluetooth GPS device with raccoonloc.py script. The script should simply make socket connection to it regardless if they are paired or not (but then again, there are many devices out there which might need some magic to make them work).
To run the raccoonloc.py script, just tell your browser to go to your Raccoon web server and the script, e.g.
In this case the location info response from your mobile takes longer time, i.e. the socket timeout. In the RaccoonOnMap you will see waiting icon in front of your name running longer time until it finally gets the response.
Assuming this all works at one day, what happens if the mouse is not connected to the phone but I run Raccoon? I read that a socket timeout will happen after 10 sec, will this affect Raccon operation or affect the behaviour next time I connect the mouse again?
I often change my account preferences if I know that I won't have my GPS device with me. You can change the "RaccoonOnMap Location URL" to
(i.e. change getLoc to getGSM). Then the raccoonloc.py script does not try to make connection to GPS device but returns directly the cell id information.