I believe it does, but the difference may be that the SE trim and Sport trim have different CD players (Such as Business CD). There may not be mp3 support on some models, and/or fewer speakers.
My Sport has a 6 CD interchanger in the centre console behind the seats too. I'm not sure whether this is standard or not.
have you got the auto changer and mini disc player like me yay im not the only one with the antiquated tech in the car lol
i found 2 mini discs in a box in the garage. 1 had Bt IMA on it and the other emma bunton and steps! obviously the 2nd was not mine as i only listen to techno whilst im getting the car sprayed blue
a bit like this pic
https://www.google.co.uk/search?q=bmw+z4+minidisc&client=firefox-a&hs=zIc&rls=org.mozilla:en-USfficial&source=lnms&tbm=isch&sa=X&ei=8YALUuOHMKrE0QWz9YCACA&ved=0CAkQ_AUoAQ&biw=1397&bih=662#facrc=_&imgdii=XmthlxXKSC1jGM%3A%3BxO4YY2zMtu8HrM%3BXmthlxXKSC1jGM%3A&imgrc=XmthlxXKSC1jGM%3A%3BzRu13FmiuO2YiM%3Bhttp%253A%252F%252Fwww.bmw.com%252Fcom%252Fde%252Fnewvehicles%252Fz4%252Fcoupe%252F2006%252Fallfacts%252F_shared%252Fimg%252Fequipment_interior_steeringwheel_sport.jpg%3Bhttp%253A%252F%252Fwww.bmw.com%252Fcom%252Fde%252Fnewvehicles%252Fz4%252Fcoupe%252F2006%252Fallfacts%252Fequipment_interior.html%3B528%3B303