Just what the topic says. I bought my 535xiT and I wonder if it has the Leveling rear suspension. If so, does this mean the car "raises" the rear suspension when there is a load in the rear?

Yes, its correct.

Yes, as in the reply above. The rear axle of the E61 has air suspension that levels the car when you increase the load. Sometimes you can actually hear the air compressor under the car.

On this topic, does any know if the dealer can set the rear suspension a bit softer? The M sport suspension is too firm for the road I travel everyday.

What i Know is that you can adjust the air in the suspension to set the Height by programming in BMW.
To modify to a bit softer i realy dont know. Maybe you can modify to a original (non-Msport) bmw suspension that is softer than M sport.

If the ride is too hard , why did you buy an M Sport rather than an SE ? :| :| :| :| :|

I've driven a 3 series and 1 series M sport (both 2007 model) and the ride is much better even with Run flats on. However driving this E61 everyday I've noticed the front spring suspension is a lot softer than the rear air suspension especially going through speed bumps. Didn't feel the difference when I did the half hour pre-sale test drive around the dealer where the road is nice and smooth. :ermm:

what do you mean you can "adjust the air" in the suspension? Can this be done through iDrive or does the dealer has to reprogram it through the ECU?

Nothing in the iDrive...Don't know if dealer can do anything.
It is after all self adjusting :P

The dealer have to reprogram but it is only to set the Height in case of lowering in the front.