Xbee Znet 2.5 and Arduino

I’m trying to hook up two xbee radios to two arduinos.

I started by following the tutorial here

http://blog.kevinhoyt.org/wp-content/xbee-setup.pdf

I was able to flash the firmware and one xbee is a coordinator (flashing pin 15 once a second) and the other is an associate (flashing pin 15 twice a second)

I’m using the following code on my arduino’s,

The first code runs on the arduino attached to the coordinator xbee,

/* 
This is an Xbee test sketch using a switch

This is for the sending xbee

DigitalPin 12 has an LED
DigitalPin 7 has a switch

When the switch is turned on it broadcasts that to the other xbee
*/
#define LED 8 //the pin with the LED
#define BUTTON 7 //the pin with the button

int val = 0;  //"val" stores the state of the button

void setup(){
  //set the pin modes
  pinMode(LED,OUTPUT);//sets the LED as an output
  pinMode(BUTTON,INPUT);//sets the button as an input
  //Turn on the serial comand
  Serial.begin(9600);
}


void loop() {
  val = digitalRead(BUTTON);  //what is the state of the switch
  if (val == HIGH){
    digitalWrite(LED, HIGH);//turn the LED on
    Serial.print('X'); //sends an "On" message
  } 
  else {
    digitalWrite(LED, LOW);  //turns it off
    Serial.print('O');  //Sends an "off" message
  }

delay(500);
}

This code runs on the ardunio attached to the associate xbee,

/* 
This is an Xbee test sketch using a switch

This is for the receiving xbee

DigitalPin 8 has an LED

When the switch is turned on it broadcasts that to the other xbee
*/

#define LED 8 //the pin with the LED

byte val = 0;  //what is the other xbee saying


void setup () {
  Serial.begin(9600);
  pinMode(LED,OUTPUT);
}

void loop(){
  //delay(500);
  if (Serial.available()){
    val = Serial.read(); //What is the other xbee saying
    if (val == 'X'){
      digitalWrite(LED, HIGH);//turn on the LED
      Serial.print(val);
    }
    if (val == 'O') {
      digitalWrite(LED,LOW);
      Serial.print(val);
    }
  }
}

I want to push a swich on one ardunio and have an LED light up off of the second arduino. I hope my code is clear.

The problem is that i can get this to happen if i connect the arduino TX/RX pins to each other (TX1 → RX2, RX1 → TX2), and I hit the switch and the LED turns on, but when i attach TX/RX to the xbee’s nothing happens.

Any help would be greatly appreciated,