It looks like you're using the latest developer snapshot of Chainsaw, yes? If not, grab it here: http://people.apache.org/~sdeboy
The option you've selected allows you to read a java.util.logging XML-formatted log file available from a URL (http etc).
Since you want to send events from a java.util.logging configuration via a socket, you should instead use the File, Load Chainsaw configuration option, select 'Use a Chainsaw config' and browse to the Chainsaw XML config file you pasted above with the XMLSocketReceiver definition.