Unfortunately, there is no XM radio capability on the 2001 E320. The antenna you're probably thinking of is for either nav or the teleaid. If you want to keep the stock look and leave the old radio in even, you can put an aftermarket headuint in the compartment below the radio. You could just put an XM antenna on the trunk and then get an XM ready headunit.
I have no idea about the wiring in of an aftermarket headunit, but I'm sure someone on here will know.
I have no idea about the wiring in of an aftermarket headunit, but I'm sure someone on here will know.