where is the RX and TX on the xbee? Do I need to buy the separate board in enable to use RX and TX or can I just use RX and TX from my Arduino and hook it up to for example D4 and D5 on the xbee?
That would be Data In and Data out on the XBee (Most use Pins 2 and 3 for that).
There are 3rd party adapter boards you can use that will connect an XBee to an Aurdino