Properly configured Series 1 or Series 2 hardware will work fine with the XBee Lilypad.
Not sure what bouncing back letters means....
The Xbee configuration has proven to be a challenge, especially as there aren't that many good tutorials on setting up the series 2 Xbee's.
I'm assuming that you have code on one Arduino that is bringing a pin high and low when it *receives* "H" and "L" over the serial port. And code on the other Arduino that sends an "H" and "L" to the first one. That's right?
Please enter a valid email to subscribe
We need to confirm your email address.
To complete the subscription, please click the link in the
email we just sent you.
Thank you for subscribing!
via Egeo 16