A method and apparatus for device discovery and multi-mode security in a wired and/or wireless control network are described. A controlled device is configured with discovery-level instructions and application-level control instructions. The controlled device includes a user-configurable parameter for selecting between multiple security modes. In one or more security modes, the controlled device may ignore application-level messages until encrypted communications are established with a controller. In one mode, the encrypted communication is established with an encryption key exchange using a predetermined security key. In another mode, a specific key is manually entered into the controller by the user/administrator to facilitate the encryption key exchange. Additionally, for control applications where security is not important, an unencrypted security mode may be implemented. A driver ID provided by the controlled device facilitates loading of a preferred device driver by the controller.