It's the radio module. If you want AUX input you will need to replace it with one from a 2003 or newer. If you get one from a 2003 you get AUX. If you get one from a 2004 or 2005 you will get AUX and SIRIUS capability.

Vaheh fom Crevier BMW recently had some newer radio modules that support AUX and SIRIUS capability for around $350. A steal compared to the regular price.

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