Xbee is one of popular wireless module in the world. It support two-ways communication (one Xbee
module can send or receive the data to/from other modules).The different between Zigbee
and Xbee is Zigbee is name of industry standard while Xbee is name of Zigbee standard
module produced by Digi.Xbee can communicate via UART (TX,RX signal) and sending the signal (data) within the short range is very accurate.Xbee module have an internal IC that help
in encoding the data.The main advantage of this module is it consume low watt (low
electric power),small size and cheap.Although it is restricted to send data within short
distance, it can send data from one node to another node and this feature make it
appropriate for making wireless sensor network.
The below image is the picture of xbee module

Picture of Xbee module
Below is useful links for doing Xbee on Arduino
Programming Arduino Wirelessly
Arduino Xbee Interface Circuit (AXIC)
XBee radios
Arduino+XBee+LCD Info Device
Thank you.
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