I have no idea why I can't go back to an earlier Z4, but the dealer isn't offering that option. I've decided to install an XM receiver in the arm rest pugged into the audio input and power source. There a unit that will fit in the area next to the cup holders. I'll have run an antenna. Nothing will be seen in car. The cost is under $30. What you lose is you have to open the arm rest to change the channel. $30 versus $800+.
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