Issues with Xbee-Arduino - PC...continuous restarting!

I have an arduino connected to a few sensors (accelerometer, magnetic sensor) as well as a switch and a potentiometer. This is connected to an Xbee configured for API mode with escape characters. To send packets from the Arduino to the xbee, I'm using Andrew Rapp's code library.
There is a receiver xbee connected to my pc which is communicating with flash via serialProxy.

Now I'm facing a problem that seems to occur at all baud rates. I switch the arduino on and it seems to be working fine, but if i send any data to it from the computer, it resets within a few seconds. Can you guys tell me why this is happening?!

I have a suspicion it has something to do with the available RAM, but i dont know how to confirm this =/

Make sure that whatever program on the PC is sending the data, is not also toggling the DTR pin. (Some programs use DTR for handshaking).

I haven't checked you code but I had a similar problem when I was writing the characters for the serial port into and array for processing. I was mistakenly writing off the end of the array, which caused a reboot each time data came in.

I'm using Flash and serProxy on the computer end.

How exactly would something trigger the DTR pin?

The program may pull DTR low as directed by its code. this is then simulated by the FTDI or equivalent chip to bring low the reset pin.

Don't try to influence/adjust the program. Just counteract the effect:

http://arduino.cc/playground/Main/DisablingAutoResetOnSerialConnection

This may not be the problem but it is easy to rule out.