hoping someone can help me with a problem here. I'm attempting to setup a test (loan from Cisco) wireless network. Here's what i've got/done:

5508 Controller -
Service Port IP set to 10.74.5.2 /24.
Management IP set to 10.74.6.2 /24 with a default gateway of 10.74.6.1.
Virtual IP set to 1.1.1.1.

Copper SFP in slot 7, CAT5 (known good) going from there to port 1/0/47 on the switch. Green lights on both ends.

2960-S Switch -
Vlan1 - 10.74.6.1 /24.
dhcp pool 10.74.6.0 /24, default router 10.74.6.1.
excluded-address 10.74.6.1, 10.74.6.2.

1/0/4 on the switch is set to switchport mode access and no shut.
1/0/47 on the switch is setup to switchport mode trunk and no shut.
1/0/4 has a CAT5 (known good) cable going from there to the AP.

When I do a sh cdp nei from the switch, i can see the AP and Controller listed.
When i configure my PC's nic to 10.74.5.5, and plug a cable from my nic to the SP port on the controller i can get on the device via the gui. In there, the only errors/info that show up in the trap are:

Link Up: Slot: 0 Port: 7
Controller time base status - Controller is out of sync with the central timebase.

I've manually set the time but apparently that's not quite the problem (or at least not the entire problem).

When i plug the AP in, i see on the switch console that it grants it power, it sees it connect...but the controller won't see it for some reason. From what i've read you shouldn't have to do anything to the AP as it's managed by the controller...but i'm not sure what setting I'm missing for it to work. The AP light on top is continually cycling green, red, yellow. When I first start it up, it blinks green for 20 or so seconds, then goes to solid green for another 20 seconds or so, then flashes blue, green, red for awhile...but always ends up goinn back to the standard, green, red, yellow. Does anyone see any obvious issues with my setup or have any suggestions as to why i might be having a problem? Thanks for your help!