I haven't tried this mode myself yet and unfortunately don't have time to try it right now, but johnnyxiong's config looks generally ok to me.
There are some caveats with this mode though, see this mail thread: Discussion of all things about the Yocto Project () and specifically this wiki page: https://wiki.yoctoproject.org/wiki/How_do_I for tips on setting it up right. And please report back with specific errors, if that still doesn't work, I'll try to help further (and specific error messages will help me to do that).