The XBee Arduino shield should work fine.
However, the XBee module you've selected is a series 2, not a series 1.
The XBee series 1 modules are less expensive and are simpler to configure then the XBee series 2 modules.
In fact the XBee series 1 modules may not require any configuration before use and may connect right out of the box.
The XBee series 1 modules can form a virtual serial cable between the two Arduino UARTs.
I believe the following is an XBee series 1 with a U.FL for an external antenna:
Xbee 1mW U.FL Connection
Most major parts distributors carry them:
XB24-AUI-001
The part numbers for the series 1 all start with XB24 or XBP24 and do not follow with a BZ, they are also available with a wire or chip antenna if required.
Also, depending on the voltage range of the analog output of the sensor, you may not need an Arduino at the sensor point.
The XBees do offer an ADC input which can function without the aid of a microcontroller.
BigDog