Can't get Xbees to connect

I'd like to use Xbees (1st gen) to transmit accelerometer data from a remote arduino to my computer. When I try to establish a serial connection the red RSSI light goes on briefly but then shuts off and nothing is reported to the Arduino IDE serial monitor. When I plug the aruduino in to my computer the accelerometer reports its data just fine. The code sets the baud rate to 115200 so I've set the Xbees to that rate as well. I've also tried 9600 but still no dice. I've make sure that the ATIDs were the same and that they are set up to talk to each other. I'm using the RX and TX ( 0,1) pins on an arduino uno connected to the RX TX pins of my Xbee adapter. I've recorded a video of the problem and will link below if that makes it a little easier to diagnose.

https://www.youtube.com/watch?v=P4dYxYXoyKU

/*
>>MMA7361 Demo Serial communication arduino sketch to use with companion Processing Sketch

by James Grantham



*/
#include "Accelerometer.h"

Accelerometer myAccelerometer = Accelerometer();

void setup(){
  

  Serial.begin(115200);             // we agree to talk fast!

   //Connect up the following pins and your power rail 
  //                    SL GS 0G   X  Y  Z    
  myAccelerometer.begin(3, 4, 5, A0, A1, A2);
    
  //calibration performed below
  Serial.println("Please place the Accelerometer on a flat\nLevel surface");
  delay(2000);//Give user 2 seconds to comply
  myAccelerometer.calibrate();
  
}



void loop(){
  delay(20);//delay for readability
  //reads the values of your accelerometer
  myAccelerometer.read();
  
  // This section writes to the serial connection in a format that can be interpreted by the companion processing app
  Serial.print("X");
  Serial.println(myAccelerometer._Xgs);
  Serial.print("Y");
  Serial.println(myAccelerometer._Ygs);
  Serial.print("Z");
  Serial.println(myAccelerometer._Zgs);
}

Bump. Still can't get it :(

Update: Connection is kind of working but serial port shows a lot of nonsense and eventually times out. Heres another video showing the problem http://youtu.be/Y0LEXcmf-hs

Update: I feel like Im kind of talking to myself here... anyway I was FINALLY able to get it working by switching the baud rate to 9600 for the Xbees and the arduino code. Can someone explain why it doesnt work at the higher baud rate?

Can someone explain why it doesnt work at the higher baud rate?

Is the Serial instance being used to talk to the XBee or to talk to the PC?