Using XBEE as serial UART wire replacement

I have circuit that interfaces with the ATMega 168 via UART over a a single wire connection. I’m trying to replace the wire with the XBEE. I have an XBEE explorer that I used to configure my XBEE; setup the channel, PAN ID, destination and source addresses and baud. The TX XBEE has 3 connections, DIN, VCC (3 volts), and GRND. The RX XBEE has 3 connections; DOUT, VCC, and GRND. Can’t seem to get communications to work.

It was VCC. Datasheet says 2.8-3.4V. I had 3.0V for supply. Would not work. Modified cicuit for 3.3V, working as advertised.