Phone connects but can't call to Asterisk

Ok This is how I have my asterisk installation set up.

I installed X-Lite phone and it’s logged in, I just can’t get it to complete a call. If I dial 1234 it should tell me my extension right?

All I get is:
Call Failed: 408 Time out

Even when trying to dial other extensions. Is there a way to call the PBX just to see if the phone I am using is even working properly?

What does it show on the Asterisk console when you make the call?

Where is the asterisk console?

Are you using asterisk@home?

To open asterisk console type in the command prompt:
asterisk -r

Check this if you have problems with configuration: