ESP8266 Community Forum

OK big secret is you connect up the XPD pin through a 100 uF capacitor . So XPDPin----||----RST
Works fine then. I just picked a small cap from bench


When it hits it will reset and start the sketch again
The auto reset feature of arduino boards also use this technique on the DTR line and Sparkfun's "Thing" board uses it also .

Good tip about the cap.
However I found that a 100uF cap will prevent you from entering program mode.
A .01uF cap worked fine.