Telemetry Using Xbee Modules

For telemetry the Xbee appears to be the option. Adalady has a great tutorial on wiring up the arduino with an XBee for point-to-point communication using a $10 board available from Adafruit.com

DIYdrones.com also has board for connecting the XBee and some documentation. However, for a newbee like me it was a little sparse.

On the computer side of things all you appear to need is an FTDI cable (for either system).

Wiring the XBee to the arduino AND being able to reset the arduino remotely can be found here.

For communication over XBee the Arduino appears to need the NewSoftSerial library.