I'm currently using Xbee series 1 to be connected to Arduino. My Xbee version is XB24 10CD. In X-CTU->Modem Configuration, I'm confused with the I/O Settings which have a list settings from D0 to D8 configuration. When you click on it there is a small box list. What does the "DI", "DO LOW" and "DO HIGH" mean and what are their functions?
Digital input/output devices can be directly attached to the XBee. The XBee can read the device's state, if the value is set to DIN, or can turn the output device on or off, it the value is set to DO HIGH or DO LOW, respectively.
So in order for my remote Xbee which is connected to arduino and sensor to send data, I have to set "DI" state for connection between arduino TX and Xbee DIN, am I right or wrong?
It depends on whether the sensor is connected to the XBee or to the Arduino. If the sensor is connected to the XBee, then you need to set whichever pin the sensor is connected to to DIN, in order to read the sensor value.
If the sensor is connected to the Arduino, you don't need to do anything for the XBee. Just have the Arduino send data to the serial port that the XBee is attached to.