You would use the xlr only if you're using the para driver as a DI, i.e. going to a mixing board. If you are using it as a pedal with a regular bass amp, you would use the 1/4" output jack with a regular guitar cord. If the "line/inst/output" switch is to the left, you will get a hotter output signal, which could be more noisy.
If you are going from the para driver di's 1/4" output to the regular input on a bass amp, i.e. where you would normally plug your instrument into the amp, set that switch to "inst".
If you are going into something that is expecting a (hotter) line level signal, for example a 1/4" line in jack on a mixing board, or a line-level effects return on a bass amp, then you would set that switch to "line".
If it's set to "line" and you're going into an "inst"rument level input, I guess that could account for the hiss.
Spend some time playing with it. You should be able to get the hiss out with some experimentation of the line/inst/output switch, the "level" control, the "treble" control (as PortlandBass77 said) and the controls on your amp. It shouldn't be that hard to get the hiss out. If it just won't go away, possibly the pedal is defective.