I doubt you can update the XM to include traffic; best look at trading for a 2010 if that is important to you. Personally, I didn't find it to work all that well in ATL when I had a loaner with it. You can easily add XM radio with your setup using the factory add on kit or the one from VAIS Technologies. As for the iPod integration, you have similar options with the OEM kit or another VAIS product. I added both XM and iPod integration to my '06 430 using the VAIS stuff. You daisy chain the units and it works great. I have 3 sets of SAT presets and it displays the currently playing data on the screen. I can use the steering wheel controls to change presets or banks of preset that I'm listening to. The iPod integration is similar. There is a charge/data/audio cable that plugs in to the port on the iPod and then you can change playlists, tracks, etc using the factory controls while it displays the song data on the screen. Your '08 will handle more elegant navigation on the iPod side, allowing you to browse artists/albums/genre I believe. Check out www.vaistech.com and give them a call if you have questions. There are specific compatibility items that aren't the easiest to understand at first glance. Since you don't have Mark Levinson or DVD capability, you can actually add a VAIS unit that will allow you to play video off the ipod on the nav screen.