What is transparent and API serial interface?

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Are those interfaces just to configure the module as either co-ordinator, router or end device and for other parameters like baud rate etc? Also if my end device would be connected to mcu in the final design, then do i have to configure it via usb as end device (i mean before using it in my design)?

Try looking at http://www.digi.com/support/kbase/kbaseresultdetl?id=2184. I think it will answer your question.

Transparent mode is just that. data in equals data out.

API mode is a frame based interface that allows you to issue Gets and sets using known frames.

Thanks! What is meant by gets and sets?

What is meant by Gets and Sets is the ability to issue a transmit request, receive packet, issue AT commands and see responses from them.

Understood a little bit, but still thanks a lot!!