Is the radio XM ready

 

No. But an "XM ready" Honda radio still requires an XM reciever, antenna, and installation. That can run $300-$500 at a Honda dealership.

Best thing to do is get the Fit Sport, buy a XM receiver (like at best buy for $50 bucks), and hook up the receiver audio output into the stereo aux in.

 

By using Aux I guess you won't be using an FM station to hear you music?It will be pumped direct through your speakers? With my Rav I would have to listen on a FM station...No Aux!

 

Correct. With an aux in you will directly connect the audio feed. No need to deal with FM modulation, which is OK for talk radio, but bad for music with phat bass.

 

If you only want the Aux from the sport, it should be a dealer installable option for the base - the Civic line has it as an option.

Of course, for Canadians, it's available starting from the base model.

 

After listening to XM on my computer (AOL) I want it on my next car

 

Try Sirius. It's much better I think.

 

Sirius has NPR. That alone makes it better (unless you're a huge Bob Edwards fan...)