Sky-drive said:
Im guessing sport mode improves acceleration however do you know if it changes any other setting on the car to enhance performance? The previous owner told me the sport button also improved handling during cornering but Im pretty sure that is not the case ...
The sport button changes the responsiveness of the throttle (how much the throttle body opens for a given amount of pedal travel), but won't give you any more power once the throttle is flat to the floor. You are right that it does nothing to the handling.
Enjoy your Zed, I have the same engine in my 325ti, it's a good one and does sound even nicer with an induction kit.