Xbee Series 1 in API

I'm just starting to work with the Xbee modules, have done several Arduino projects. I'm also reading a book on the subject and watched several YouTube videos, so I'm on the edge of clueless and dangerous.

I have 2 series 1 Xbee modules, using the Sparkfun Explorer Regulated boards to connect the Xbee to the Arduino. My project will only have these two communicating to each other, I'm making a rover that I will control per 1 Arduino and the on board one will send back info. I will be sending servo references and reading back from a GPS.

I know for one to one configuration I do not need API but from what I've read it seems a more efficient way to send data back and forth.

So my questions are.

  1. Can a Series 1 be set to API?
  2. Do I need to?
  3. If still in the AP mode can I send packets to and from each Arduino?