Spark Fun Xbee Shield question

I have purchased 2 of the following items:

The arduino main board:

The Xbee shield:

and the XBee series 2, 2.5mw module:

I have not found much information on the Sparkfun Xbee shield so i have a couple questions to start off.
There is a 2 position switch labeled DLINE and UART.
which is the correct position in order to set the XBees up through XCTU?

I tried following the tutorial below but it was no help.

I hear it is best to configure the Xbees with the XCTU but I was following this tutorial:

And i see that it uses remaps something, im assuming the address but i am not sure.
any help is welcome. Thanks