Is it possible to upgrade the factory radio to include bluetooth? Under "Settings" my car says "Telephone not Installed". Any help would be greatly appreciated.

There's nothing to upgrade with respect to the radio (COMAND).

Just install the phone kit.

Here's the procedure for a 2005. What year is yours?

http://phdwebsite.powerpulse.cc/Phone%20Install%20Bulletins/2005%20E%20Sedan.pdf

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Kent Christensen
Albuquerque
'07 GL320CDI, '10 CL550. '01 Porsche Boxster
Two BMW motorcycles

Its an '03 E500

I'm a rookie at this. Where do I find the phone kit, MB dealer?