WiFly RN-XV not connecting

I can't get this guy to connect to save my life. I'm trying to telnet to it from my laptop. I'm disabled my ethernet on the laptop to avoid interference. The furthest I've got is the green light being solid, yellow light constantly blinking, and the red light off. The computer is connected to it with limited connectivity with a ip address of Trying to achieve this project:


Thank you for your time.