Yeah, you need to set the 527 IP address, all of the configuration comes from the axis properties. The process of setting the IP is a little different than a 525, if you are familiar with those.
Once the IP is set, the PLC should transfer the axis properties to the drive automatically.
“Motion only” means you are using the hard wired STO. I think the other selection is something like “Motion and Safety”, which would be for safety over Ethernet, which requires a safety PLC.
Edit: I remember there being something quirky about it, like you had to enter a gateway address, even if you didn’t want one. I’ll ask around.