If you don't have the u-connect module, you will need to get one. It comes with everything you'll need, including the microphone and CD. Very easy to install, goes behind the glove box.
Bad news is that you WILL have to go to the dealership and have them flash the computer to let it know it's there. That's about $60.00, or half hour labor.
I was in the same boat as you, and did all these things. It was a little bit expensive overall, but wow, what a difference between the two radios.
Get the u-connect module from ebay, but look for the best price. They vary quite a bit. And research it to get the correct unit, as thre are at least 3 different ones for the different years.
Look at the link above that Panthermark posted. It will answer all of your questions.