Oh wow Ok I am stoked. Thank you Kumar Bibek for helping me. I am answering my own question here in case anyone else was as much of a noob as I am and equally as bad luck with google as I did :)
Ok first install Kryonet's source to your main GDX project /src folder (the platform independent project).
Next copy the required .JARs into the /lib of your main GDX project.
Then in Eclipse right click on your main project and add the libraries to your build path. Make sure to check them under the Order and export (this might not be necessary)
(this is where I made a mistake) Make sure that you don't put the required .JARs into your android source folder's /lib only in the main GDX project /lib folder
Then in Eclipse right click on your android GDX project and click Add JARs. In this menu go into your main GDX project's /lib folder and add all the necessary JARs for Kryonet. Then go into Order and Export and check all these JARs.
Now you can compile your Android GDX project Thanks again stack overflow I love you. I hope that made sense and helps other noobs, as I am pretty tipsy now lol :)