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I've been wanting to wrap this project up for awhile, and I finally have.
I use an XBee to read joystick values and interpret the values with an Arduino Diecimila.

Then, I use my rc airboat to demonstrate the possibilities!

More info, including sample code, on my blog, http://ilektron-x.blogspot.com/, including a video
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I appreciate the effort you put into describing the packet structure. I need to get my XBees out again and have some fun.
The only thing I didn't see was what kind of XBees you are using. Series 1 (point to point) or Series 2/2.5 (mesh network)?
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Good question. I am using series 1.
Series 1 are better for point to point, higher bandwidth communication. These are just the regular version, too. Not the Pro series.