Help with sending wireless commands through xbee modules (802.15.4)

I am trying to get a wireless signal to light up an led on my arduino remotely and the code i have used will be posted below. My problem is I have bought this sparkfun xbee shield to try and send commands from my computer to the xbee on the arduino however it doesnt seem to be working right. I am trying to get a wireless signal to light up an led on my arduino remotely and the code i have used wil be posted below. On the xbee shield it self when it is turned on (whether or not it is powered by computer or remotely using a battery pack) I can see a red light blinking on the led named Dout everytime i type into terminal on x-ctu with the other xbee plugged into my computer. Because of this im convinced i have configured both xbees correctly (they are both PAN 3333) but i dunt get why when i type "1" in terminal my led doesnt light up as expected. If some one could please help me with this I would be very grateful because this is just a start my end goal once i lern how to get this working is to use that knowledge to control this car i have built for a project.

links to parts used:
The shield (Sparkfun xbee shield with explorer)

Xbees (They both look exactly like the top left one)

If i have missed any other important information you need to help me i apologize and will try to quickly get post back.

int led = 12;
int i;
int myData =0;
void setup() {
Serial.begin(9600);
//DEBUGGING LED
pinMode(led,OUTPUT);
//
}

void loop(){
if(Serial.available()>0){

myData = Serial.read();
if(myData=='1'){
digitalWrite(led,HIGH);
Serial.write(myData);
}
if(myData == '2'){
digitalWrite(led,LOW);
Serial.write(myData);
}
else{
Serial.write(myData);
}
}
}