Olimex ESP8266-DEV WiFi not working

I have downloaded Arduino Sketch program and got it to compile and load a simple program in my Olimex ESP8266-DEV board (flashing an LED), which works. I since have tried to setup the WiFi, I grab some simple sample code to bring up the WiFi and it compiles and loads, but will not connect to the WiFi. The code send the status of the progress to the serial port and everything I get to a WiFi command in my code it reboots the ESP8266.

I am using the following library and WiFi commands for reference (not attaching all the test code).
#include <WiFi.h>
WiFi.begin(ssid, password);
WiFi.macAddress(mac);

I have tested the ESP8266’s WiFi network up using AT commands prior to trying the Arduino sketch. I am very new to this so I am sure I have missed something simple. Any help would be appreciated.

Is there anything that needs to be done to the low level firmware on The olimex ESP8266-DEV board to make it work with Arduino IDE? I have tried 2 boards with the same result.

Here is what I get on the serial monitor, right after “WiFi.macAddress(mac);” execute and it just keeps looping.

wdt reset
load 0x4010f000, len 1264, room 16
tail 0
chksum 0x42
csum 0x42
~ld
Initializing Wifi… <<<<message Sent from my Program

wdt reset
load 0x4010f000, len 1264, room 16
tail 0
chksum 0x42
csum 0x42
~ld
Initializing Wifi… <<<<message Sent from my Program

Do you have a solid power supply?

These modules can draw more than 200 mA (what I read) and tend to reboot on power loss.

Yes the power supply is 500mA.

I got it working, I de-installed Arduino application on my Windows 7 PC and re-installed it and it works now. I think it had something to do with the Libraries.