well,i didnt make it up...we are a team of 2,and i wrote the code on my team-mates arduino, not mine, and tested it there,so i knew what happened,and i coudnt reply yesterday because i did not have the zigbees with me.,and coudnt call my team mate up at 5 in the morning. 
ok,so here is the deal now.
I made a mistake in the above posts,we do not have a xbee series 2, we have one called the xbee pro xsc ufl..now according to the internet , they have stopped manufacturing it .But we did configure them as a master and slave, now comes the problem, in x-ctu, no function set is actually working for it,it always fails,basically we are trying to use the API mode ,can you please explain me how to do it,i am really clue - less about it.