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I installed XM Radio approximately 1 year ago in my 02 and it has been great...until this week. It's not a daily driver so I don't know when it stopped working but it can not have been more than 7-10 days ago.
Everything appears to function correctly; the unit is receiving the channels, etc. but when I hit the CD/AUX button on the radio it goes to the XM setting (aux) and there is absolutely no sound. After about 20-30 seconds, I get an error (err) message on the radio and it kicks me out of the AUX and into the AM band...
Had this happen a couple times when I first hooked up my XM Commander. My issues was the RCA cables. I had a pair that I had lying around that I used (were a couple years old). Replaced them with a new cheap pair that I got with some home stereo equipment and the problem went away. Also try just unplugging everything and reconnecting. May have a loose connection.