Arduino XBee Programming

I currently have the following:
1x - Arduino Uno SMD R3

1x - XBee Wireless Shield

2x - XBee S1

1x - XBee USB Adapter

I also have the cables needed to connect these devices.

I set the PAN ID on both the XBees to the same. (3332)
When I connect the Arduino/Wireless Shield/XBee to a power source along with the XBee/USB Adapter to my computer.
I use the moltosenso Network Manager Iron to open the XBee port and communicate using the built in terminal. I see the red light flashing on both the wireless shield (DIO5) and the XBee with USB adapter (TX).

The problem I'm having is that the LED I have plugged into the ground/13 does not turn on with a capital 'H' and turn off with 'L' witht he following code uploaded to the Arduino.

const int ledPin = 13; // the pin that the LED is attached to
int incomingByte;      // a variable to read incoming serial data into

void setup() {
  // initialize serial communication:
  Serial.begin(9600);
  // initialize the LED pin as an output:
  pinMode(ledPin, OUTPUT);
}

void loop() {
  // see if there's incoming serial data:
  if (Serial.available() > 0) {
    // read the oldest byte in the serial buffer:
    incomingByte = Serial.read();
    // if it's a capital H (ASCII 72), turn on the LED:
    if (incomingByte == 'H') {
      digitalWrite(ledPin, HIGH);
    } 
    // if it's an L (ASCII 76) turn off the LED:
    if (incomingByte == 'L') {
      digitalWrite(ledPin, LOW);
    }
  }
}

Also, I don't know if it matters, but when I have the arduino plugged in with no wireless shield I can upload the sketches.
However, when the wireless shield is plugged in my computer cannot recognize it or use the Serial Monitor because it cannot be located.

Any help would be appreciated.

Also, if it helps my computer is the Macbook Pro 15" Retina Display with Mac OS X 10.8.3

Best regards.

I currently have the following:

Massively oversized pictures, instead of links.

An LED without a current limiting resistor that will eventually destroy that pin.

I set the PAN ID on both the XBees to the same. (3332)

What about MY and DL? What are they set to?