I think you are on Bridge colon Mode.And to recover from colon mode . We have to to following troubleshooting steps.

Before reloading the new firmware , first Bridge (1310) needed to be formated.But since you cannot telnet, to access Bridge you need to access it through console.On console you will see..

bridge:

Step 1.Type format flash: on the bridge and then hit enter

Step 2. Enter the set command to assign an IP address, subnet mask, and

default gateway to the access point.

Note:-The system you are using must have tftp server recomended by

Cisco.

Also load the IOS file in the tftp server.Before step 3.

Step 3.Enter the tftp_init command to prepare the access point for TFTP

bridge: tftp_init

Step 4. Enter the tar command to load and inflate the new image from your TFTP server. The command must include this information:

the -xtract option, which inflates the image when it is loaded

the IP address of your TFTP server

the directory on the TFTP server that contains the image

the name of the image

the destination for the image (the access point Flash)