I've had Sirius for years and I cannot imagine driving without it.
A couple of options:
1) I had my dealer install a Pioneer in-dash unit in my Smart. The same unit can be configured for either Sirius or XM. Remember, these companies are merging, so soon they'll be the same regardless of which radio you install.
2) Many Sirius and XM receivers have an FM output option. You can simply put a receiver in your window and then tune your FM radio to the selected station.
3) You also have an AUX input in the glovebox. You can connect this to the XM receiver with a cheap ($6 at Radio Shack) cable - just connect the audio out to the AUX input.
When you're done - check out my 10,000 mile road trip in a smart - 2008RoadTrip.com!