Ian_Lang:
Yes, but if you want to do anything complicated with the other XBee you'd need an explorer board to run it on. API mode allows you to transmit blocks of data the Arduino can parse from a sensor.
I don't want to use a computer on the other end. I want to use an ardunio with a battery on one end, and a servo on the other end. Basically, I want analog I/O line passing.