"When I get it do I have to arrange the artists and albums into alphabetic order and set it all up or does the device do this once I have put the SD card in?"
The player sorts the songs by genre, artist, and album based on the tags. It means that your music needs to be tagged properly for the database to work. Of course you could always play music by folder rather than by tags. even if your music is properly tagged though. It is a good idea to have a folder for each genre, then a subfolder for each artist, and a subfolder within that for each album. The player also lets you make playlists on the player itself.
Fiio players are fussy about which card you use. The current Fiio X series players have no built in memory for songs, so you need to put a card in them. Some cards will cause issues in Fiio players. You are likely to avoid compatibility issues if you use a fast Sandisk micro SDHC or SDXC card(class 10). Micro SDXC cards(those have more than 32GB of storage) should be formatted on the player itself before any songs are added.
You can add songs to the card using your pc and a card reader or have the card in the player and connect the player to your pc. If you are using a card larger than 32GB though, first put it in the player, and use the player menu(under settings) to format the card.
Fiio players have a shuffle mode. I don't have the X1(II) yet, but have the original X1. The X1(II) adds blutooth, and has an all metal body(the back plate on the original X1 is plastic. The X1(II) has slightly better sound quality than the original X1, and has slightly longer battery life, and is also very slightly smaller. The firmware on the X1(II) is still in its early stages, so there will be updates improving it.
I haven't used iTunes, so I don't know if the Tunes default formats for the tags will work in the X1(II) or if your tags will need to be converted first.