Cant get this to work

Help I cant get this to work. I have tried different Distro and releases. I posted on this section but less users over at that forum section.
http://www.freepbx.org/forum/freepbx-distro/distro-discussion-help/cant-connect-x-lite-to-freepbx

My basic understanding is, Install and update. Then create an extension and password. Then connect to it.
We only need trunks to call outside right? I should be able to build a server with a bunch of local phones to call each other?

Here is the setup:
I have VMware workstation. FreePBX as a vm and used bridged networking. It gets valid ip and I set it to static. From my host workstation, I can use browser to go in and config settings. I create a couple of extensions and pw.
I try to connect to it using xlite but now go. My settings:

My settings:
NAT off
static ip 10.0.1.7 255.0.0.0
Set local traffic as 10.0.0.0 255.0.0.0
added extension 701 with secret pw

My xlite settings:
userid 701
domain 10.0.1.7
authorization 701
register with domain checked
send outbound via domain and tried proxy too.
Topology None(use local IP)

are you using x lite phone on the same PC that you are able to connect to the web interface of freepbx from?

Could be a firewall blocking it.

I just set up an xlite phone with the following settings and it worked but I had to allow it in my firewall settings.

account name 111
protocol SIP
call and IM as default ticked
User ID 111
Domain IP address of my freepbx
Display Name Fred also worked with this blank
authorization name 111 also worked with this blank

register and receive ticked
domain

Yes my pc can connect to web interface. I dont have any pc software firewall. router firewall is turned off. Is there a firewall on the pbx software?