XRF + XBBO Passive + Arduino hookup issues

Hi All

I have recently bought two XRF units and two Passive XBBO boards. I have two arduinos talking to each other over a serial link and all I want to do is replace the wired serial link with XRF. The XRF modules as I was told by a friend were suppose to be plug and play but they do not seem to be working for me yet.

I have drawn up diagrams of my setup in Fritzing. I am using XBEE as it has the same pin layout.

I am attaching a file showing my old setup.

From what I have read on the internet this setup is suppose to work. But I have not been able to get it work so far. Could someone please let me know what seems to problem with my setup?