Lilypad Xbee Hookup?

I'm assuming that you have code on one Arduino that is bringing a pin high and low when it receives "H" and "L" over the serial port. And code on the other Arduino that sends an "H" and "L" to the first one. That's right?

Yes, that's what I've got. As I would prefer to use my series 2's (the series 1's are on loan from my university faculty), I have the LP-Arduino with the coordinator xbee sending the H and L and the other LP-Arduino loaded with the receiving code and connected to the end device xbee. Is this set up correct (i.e. the coordinator at the sending end and the end device being at the receiving end)?

Also, if you got a chance to see the video tutorial of setting up series 2 xbee's on my design blog, could you please confirm if that setup is "properly configured"?

Thank you so much for your help! I really appreciate it.