Embedding Media with Colorbox does not work with CKEditor

I am running with the following modules:

Media .x-2.0-alpha2 + 10-dev
Colorbox 7.x-2.4
CKEditor 7.x-1.13 (using the full package of CKEditor v. 4.2.2)

After enabling the modules i opened the full html profile for CKEditor and clicked (admin/config/content/ckeditor/edit/Full)
1. Plugin for inserting images from Drupal media module
2. Plugin for inserting Drupal emeded media

In the File Type of image I have created a new display called article image. (admin/structure/file-types/manage/image/file-display/article_image)
1. I click the Colorbox for enabled displays
2. I set an image style for the image and colorbox image
3. Click Save Configuration

Then I go to create a new article, and in my CKEditor:
1. I click media
2. Select Library from my select a file
3. Select any file from my library
4. Apply the Article Image in the Display as option.
5. Click submit
6. Click Save for the content type.

Now what should happen (and happened when I used the WYSIWYG module with TinyMCE is that I should be able to click my image and have it open in a nice colorbox.

That is not what happens... the image just is there unclickable.

Please help, i don't want to go back to TinyMCE, but not having this feature hook up would force that, but it seems like I am just missing something.

I don't know if this helps but this is my test URL i am playing with: http://boot.designsourcemedia.com/test-article-5

Thanks for the help.