-First of all you don't add Generic Linux Device but add Mer ARM Device Tools->Options->Devices->Add

-Your PC needs to be on 192.168.2.X sub domain, thus your local IP need to begin with 192.168.2.

- In project tabs you will need to add a MerSDK_SailfishOS_armv7hl kit if not already there

- And then pick deployment target like on the image below


If I get some time I will make a full guide