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Do you have to set up the arc first? Before the sub because we did set up the sub first and now we can not get the arc to set up. My second question is if I hooked up via wifi but need to move the system can I set up the arc with Ethernet cable or do I have to reset the system? Thanks for your help and input. 

Yes, you need to setup the main speaker, the Arc first then add the Sub to it. 

You will have to reset the Sub and start fresh.

https://www.sonos.com/en-us/blog/the-ultimate-guide-to-a-sonos-home-theater

 


As long as wifi is enabled on the Arc you can move it and change to cable connection as you want. WiFi is needed for the connection to the Sub. 
Normally, set up the Arc first, because you add the Sub to the Arc. Try cabling the Arc - it sometimes works better…