Solution found! So while using the Experimental WiFly Arduino Library, inparticular the WiFly_Autoconnect_Terminal pde, I needed to comment out this part.
if (!WiFly.join(ssid, passphrase)) {
Serial.println("Association failed.");
while (1) {
// Hang on failure.
}
}
Serial.println("Associated!");
with that out of the way I was able to connect using terra term, NOT the built in arduino serial monitor. Using Terra term I was able to input the $$$ to get into command mode.