Connecting Arduino to Sparkfun XBee

Hi Folks,
I've been trying to connect my Arduino Mega 2560 to a Sparkfun XBee, via serial. It needs a voltage converter from 5V to 3.3V.
The signal looks fine on the scope out of the voltage divider (unconnected to the XBee), but when connected to the XBee on the Sparkfun board DIN, the voltage goes down to .2V.

Does the Arduino have trouble driving an XBee serial?
My old BASIC stamp worked fine, I got Zigbee comms between a stamp an Xbee on my laptop.

N.b., when I tried to order an XBee shield from Arduino Hungary, using my VISA debit card, it took them all of December '13 to refund and tell me that they didn't take funds like that, even though VISA was shown on the webpage.

Thanks,
Tim McFadden

I think you can use a 3.3V Voltage regulator in this case. Make sure that you have the right capacitors hooked up to the regulator. Then try connecting it to your XBee.