OK bridged the loopback with wifi and in gns the cloud interface should be the loopback right ? I tried but now it gives the "unable to create generic ethernet NIO" error . I tried pitting a switch in between but got the same error.
Make sure you're running GNS3 as administrator.
Since you're connecting your router to your LAN's gw, if you're going to try and connect to the internet, don't forget to set your default route on your router: ip route 0.0.0.0 0.0.0.0 192.168.5.254
Also, once you start connecting devices behind that router, you're going to need to set the router to do nat for the internal topo.