Let me add a few observations after reading the thread responses.
When I ordered through MIL in 2006, all options and MSRP had some type of discount, but in 2007 when I got a look at the 335 price list, only the MSRP and I think NAV had a little discount.
So looking at this list, it looks as though several of the items "may have" a MIL discount. I agree with the members having doubts about the $700 Premium Audio number. It could be wrong, read on.
The Premium Audio according to all the literature is clearly better than the Logic 7 system. Here is a quote from the May 2007 M3 model feature issue from BMW. "The BMW High End Individual Audio system is controlled and masterminded by the iDrive controller with basic controls still available through the normal audio controls in the center console". Clearly, according to this, you MUST have ZTP or NAV to get the high end audio...the $700 amount "might" be accurate for the US market since ZTP or NAV is a requirement to get it.
I did notice what seemed to be a bit of "back pedaling" in my last email exchange with my rep when I started to nail down some options questions, but I can't help but think the document still has some veracity. How else could they have a clue about the sunroof and trim pricing etc...?