You have to access your settings screen on your central information display and activate key dependency. In this setting, each key will be recognized and will have its own set of memory adjustments.
I heard they simplified the setup menu a lot in the 550, I just didn't know it was that much. A month ago I was going to trade my '04 SL for the new 550, mostly because of the new engine. Then I started reading other owners' posts like yours in this forum and I changed my mind. Here is why: still no iPod integration, no longer an audio aux input in glove compartment, no tilting passenger-side mirror in reverse, no real tire-pressure monitor available. On top of everything, MB scrapped their 4-year service plan included in the price of the vehicle back in 2005. I love my SL but I am no fool: I went through so many recalls and glitches and other frustrating episodes because of MB's bad customer satisfaction policy that I wouldn't buy a new car from them even if they proposed buying my old car at a premium. I'll keep it until the warranty expires next year, then I am getting an M6.