Seeedstudio XBee Shield V1.1 Help

I bought two Seeedstudio XBEE Shields at Radio Shack and I can't get the XBee radios to "talk" with each other using the code on®_Shield. Using the terminal monitor that came with Arduino IDE 1.04, I type some words on first terminal window and garbage appear on second terminal window. I try to type words on second terminal window but nothing appear on first terminal window. When I run the X-CTU program and try to test/query the modems, I get messages saying that they can't be found. How should the two toggle switches be set? Is there a tutorial on using the shields?

You really need a USB Explorer, like this, to configure the XBees.

I already have XBee USB Adapter and XBee SIP Adapter made by Parallax. How do I configure the XBee modules so that they can talk with each other?

How do I configure the XBee modules so that they can talk with each other?

Use X-CTU.

Without knowing more about WHICH XBees you have, that's the best I can do.

I have XBee S1 modules. The numbers at the top are STM-5, 940V-0, and 2411.

Series 1 models need to have PAN ID, MY, and DL set. PAN ID needs to be the same on both of them. MY on one needs to match DL on the other. Neither MY or DL should be 0 or 0xFFFF.

Sounds like a baud rate issue. Idk because i cant see the code in your link but, look at the code and see what the baud rate is set for in Serialbegin() and set the serial monitor in the arduino ide for the same baud rate. Also, hit reset on the arduino board after setting the serial monitor baud rate.
If in that’n doesn’t work, then try using a lower baud rate (for both the code and monitor obviously).