Hi Irishluck,
The easiest way to setup flight modes is to assign the flight mode switch to one of the three mode switchis in the taranis (SB or SC) during the transmitter setup wizzard. Then you have three flight modes available after finishing the wizzard. To configure the flight modes, you can either use the defaults, or go to Input -> Flight Mode Settings in the GCS and setup whatever you like (
https://librepilot.atlassian.net/wiki/display/LPDOC/Input+Configuration).
To setup all six modes you need to find a combination on your Taranis that provides you with the 6 modes in a combination you like (for example combining one 2 mode switch and one three mode switch) to one output channel and assign this combination to your flight mode switch.
You don't need S-Bus for setting up this, but if you do, with a 16 channel receiver you can chose any of the channels 5-16 for the flight mode switch. I like to put it to channel 5, then 6-9 for the 4 accessory channels.
For the pids, I would try the QAV 500 settings from the GCS defaults list. If that works reasonably well, I would suggest, first get comfortable with the quad and the GCS, before starting to get into tuning the PIDs.