It is a power problem. The USB cable I was using is defective. As soon as I changed to another USB cable it works fine. This project will need to be completely wireless so I do need to switch the power to batteries, but for now this is great! Thanks for putting up with me.

I'm wired up according to this setup http://rancidbacon.com/files/kiwicon8/ESP8266_WiFi_Module_Quick_Start_Guide_v_1.0.4.pdf I have a OSEPP FTDI for power, set to 3.3v. I flashed the eps again, this time it did the same, but I managed to connect for about 4 seconds, I got to the first screen to add ...

I almost logged onto it, then it continues to reset itself. Not sure how to fix this.

I finally figured out that I needed to switch the TX and RX pins.
Now I get these errors in the Serial Monitor.
Any ideas?
Thank you kindly