ATND command always tells me remote XBees MY=FFFE

Hello,

I have a little XBee network set up using 2 XBee Series1 modules.
Both models are HV=1744 and I’m using firmware 10E8

Module 1:
MY=0001
NI=MASTER
CE=1
A2=110B

Module 2:
MY=0003
NI=BEE3
A1=0110B

Both associate fine, the only weird problem I have is: when doing ATND (both in api mode and as normal AT command), the response is as following:

+++OK
atnd
[b]FFFE[/b]
13A200
4070B4BC
2A
BEE3

so instead of displaying the actual address (0003) it always tells me the modules address is FFFE.
When I send out packets to 0003 they also don’t arrive, only when I send them to FFFE as destination address they do.

The biggest problem of this is that when i connect more XBees to my network it always tells me MY=FFFE, so I can’t send packages to individual XBees.
I could just use 64-bit address mode, but to reduce overhead I’d really like to stick to 16-bit mode and there has to be a solution to this!

Please help!