definition of Digital Output High/Low

Can you explain the meaning of the command: ATDn 0x04 or 0x05: “Digital Output, High” and “Digital Output, Low”

Does this mean the DIOn output responds to a change in its matching input with a high or low response?
What happens if the DIOn input is a pulse with width 1ms. Does the output change twice? The doc seems to suggest the wireless DIO follows the wired DIO so maybe the output signal simple follows the input signal.

Which XBee modules are you referring to and what firmware version is installed?

The function of a DIO Output High or Low (ATDnx)is in reference to setting the default value as either an output High (3V) or Low (0V).

Product family XB24
Function Set xbee 802.15.4
Firmware 10ef
For both xbees

I also see the command ATPR (pullup resistors) This is defaulted to 0xFF so that all DIO signals are pulled up by default. Is this true even if I am using ATD1 = 0x04? In my circuit, to I need to set the ATPR=0x00 to keep the signal defaulted to 0V?

Have you looked through http://knowledge.digi.com/articles/Knowledge_Base_Article/XBee-802-15-4-Digital-Input-Output-Line-Passing/?q=xbee+DIO+line+passing&l=en_US&fs=Search&pn=1

to see how to properly set up the DIO line passing function?