Looking at the datasheet for the LD1117V33 (http://www.sparkfun.com/datasheets/Comp … 117V33.pdf) on page 6 it lists the dropout voltage of the regulator under a load 500mA at about 1.05v. The XBee Series 2 manual under “Specifications” lists a regular, non-PRO S2 module needing a minimum voltage of 3.0v and an S2B module needing a minimum voltage of 2.7v.
If you buy the LiPro battery you are interested in and wire it to the regulator you’ve identified with a few filtering caps (as shown in the regulator datasheet) and using the decoupling caps shown in the XBee manual (1uF and 8.2pF capacitors located to as near pin 1 as possible) I’m certain you’ll be able to run the XBee radio for quite awhile provided you set the sleep modes of the XBee appropriately.
What are you building? What sort of I/O will you be exchanging?
On the Explorer, the diode (D1) in series with the data line is ever a problem due to very marginal logic 0 conditions. Seems like SFE should have corrected this design deficiency long ago.
Much better off to simply use two resistors in a voltage divider arrangement.