Chad,
If they say that they need it on Mode 1, then they probably to need to have their radio on Mode 1. What needs to be realize is that there is more to this world than just the United States. Yes, here in the US most people learn to fly on Mode 2 (but not all. we have 2 people at our field that fly on Mode 1) but in other countries around the globe Mode 1 is what they mostly use. To presume that it is silly for them to fly Mode 1 just because we don't here in America is just pure arrogance. One may notice that they are located outside of the Continental United States, maybe they need mode 1 to fly where they are at.

TargetG,
As far as I know about the set up of the AFS, you should be ok whichever mode you choose to use. The differences between Mode 1 and Mode 2 are in the setup of the transmitter only. The control sticks are in different locations on the transmitter, but the channel setups on the receiver should be the same. The AFS will still be plugged into the same channels on the receiver and should still operate normally. Since you are outside of the US you may also want to verify that you can get a frequency that is legal for you to operate where you are at. Since frequencies are a bit different in other countries there may be interference on the 72 MHz frequencies where you are at. I'm not familiar with your area so I can't say for sure, but it is something that you will definitely want to check into before purchasing. I know that RCU member Joesabido lives in Mexico, maybe he'll see this and jump in here to help, or you could PM him for further info on that area.

You may want to call or email Hobbico to verify this information as they will be the expert in this arena. If you don't get a response from Hobbico you could call customer service at Tower Hobbies too.

Hope this helps.

Ken