So anyways, I have the xbee's set up so when I type in the serial monitor on #1, the serial monitor on #2 picks it up
I don't think you understand serial data at all. When you type something in the Serial Monitor application, that application then sends data to the serial port. When data arrives on the serial port, the Serial Monitor application reads that data and displays it.
Something must be on the other end of the serial port that reads data from, and writes data to, the port.
If that something is the Arduino, it can read from, and write to, the serial port IF there is proper code on it to make it do so. We haven't seen that code, yet, in spite of the fact that the sticky at the top of the forum instructs you to post your code.
If the Arduino has a XBee shield with XBee, the Arduino can send data to the XBee, to have it broadcast. Any data that the XBee receives will be made available for the Arduino to read. Exactly how to do that depends on the XBee shield and how it is set up. More information that is missing from your post.
If the XBee is configured to communicate with one or more other XBees, and that XBee is (or those XBees are) powered up and in range, the other XBee(s) will receive what the first one broadcast. You seem to have omitted any details about the configuration of the XBees.
Assuming that the other XBee, XBee shield, and Arduino are all properly set up, the data the XBee receives will be read by the Arduino and written to the serial port, for another instance of the Serial Monitor application to read and display.
That other Serial Monitor application can then start the process over again, from the other direction.