I cant get my Minecraft server to work?!

I think I did everything write! Here is everything I did, in order:
Made a server folder titled Minecraft 1.8 Server
Download the craftbukkit 1.8 file
Moved craftbukkit 1.8 to the folder
make the start.bat folder with this code:
java -Xmx1024M -jar craftbukkit-1.8-R0.1-SNAPSHOT.jar -o true
PAUSE
renamed the craftbukkit file from where it said -latest so It is not latest anymore
ran the start.bat
files came in
changed EULA to true
ran start.bat again
error comes up, says I have something running on the port (25565) already, so I change the port to 25515
run server again
everything came up fine
I try to join with localhost
it logs in for a while then says " internal exception io.netty.handler.timeout.readtimeout.exc… "
if I try to add it to my server list it says cant connect to server
I have windows 8 64bit PC plenty of RAM
what am I doing wrong? Please help
Added (1). Also I did port forward. Idk if other people can join my server or not, but I cannot.

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