westfw:
If that's ESP8266 VCC to Nano 3.3V, be aware that the nano 3.3V regulator is not powerful enough to power an ESP8266.If that's Nano VCC (5V!) to ESP8266 3.3V, that's just wrong and has probably fried your ESP.
No, i had heard of those issues before. It id 3.3v external power. Not power from the nano. I have double checked and it is supplying 3.3v. We 3.28v but close enough.