Problem with XBEE

Hi guys, I'm trying to get 2 PCs to communicate wireless via the connection shown in picture

I have the connection above one for PC 1 and one for PC 2 and I'm currently facing this error

avrdude: stk500_getsync(): not in sync: resp=0x00 ONLY ON PC1 side

PC1 CODE
void setup()
{
Serial.begin(9600);
}

void loop()
{
Serial.println("Hello World");
delay(5000);
}

PC2 CODE
void setup()
{
Serial.begin(9600);
}

void loop()
{
if Serial.available()>0)
{
Serial.write(Serial.read());
}
}

anyone knows whats the issue? I've tried pressing on the reset button and removing the cables...

thanks guys...

Have you done any xbee setup stuff?

yes,

Xbee 1 set up:
Coordinator AT
PAN: 7779
DL: 0000
DH: FFFF

Xbee 2 set up:
Router AT
PAN: 7779
DL: 0000
DH: FFFF

funny thing is when I disconnect the xbee shield from arduino and upload the code it works but it doesnt send "hello world" to PC2.