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I thought a single post with a quick run down of the differences in the 03 to 08 models would come in handy for some.

2003 Honda Element - New Model
See the specs here
2WD DX
The versatile, new Element has all the reliability that you'd expect from a Honda, plus a multitude of other features that make it big on function. It's got a 160-hp, 2.4-liter, DOHC i-VTEC® 4-cylinder engine, unit-body construction with 4-wheel independent suspension and 4-wheel disc brakes. In addition, it has removable flip-up rear seats, waterproof FXC™ seat fabric, a urethane-coated utility floor, side cargo doors and a clamshell tailgate.

4WD DX
Adds Real Time™ 4-wheel drive and a removable skylight with tilt feature

2WD EX
Turn it up a notch with the EX version. In addition to all that the DX offers, the EX has a 270-watt AM/FM/CD audio system with 7 speakers, including subwoofer, an MP3/digital-media auxiliary jack, alloy wheels, cruise control and overhead storage with map lights.

4WD EX
Adds Real Time™ 4-wheel drive and a removable skylight with tilt feature
2004 Honda Element
See the specs here.
2WD DX
The versatile Element has all the reliability that you'd expect from a Honda, plus a multitude of other features that make it big on function. It's got a 160-hp, 2.4-liter, DOHC i-VTEC® 4-cylinder engine, unit-body construction with 4-wheel independent suspension and 4-wheel disc brakes. In addition, it has removable flip-up rear seats, waterproof FXC™ seat fabric, a urethane-coated utility floor, side cargo doors and a clamshell tailgate.

4WD DX
Adds Real Time™ 4-wheel drive and a removable skylight with tilt feature.

2WD LX
The LX offers all the bells and whistles of the 2WD DX, plus an AM/FM/CD audio system with four speakers and air conditioning with an air-filtration system.

4WD LX
Adds Real Time™ 4-wheel drive and a removable skylight with tilt feature.

2WD EX
Turn it up a notch with the EX version. In addition to all that the LX offers, the EX has a 270-watt AM/FM/CD audio system with seven speakers, including subwoofer, an MP3/digital-media auxiliary jack, alloy wheels, cruise control and overhead storage with map lights.

4WD EX
Adds Real Time™ 4-wheel drive and a removable skylight with tilt feature.
2005 Honda Element
See the specs here.
2WD LX
With standard features like air conditioning and an AM/FM/CD audio system with four speakers, the 2WD LX blends value with practicality. This Element is for those who want something a little different as well as highly functional.

4WD LX
For those who desire enhanced traction, the Element 4WD LX blends value with versatility and coddles its occupants with standard LX features like air conditioning and an AM/FM/CD audio system with four speakers. The 4WD LX with Real Time™ 4WD gets you where you need to go in comfort and style.

2WD EX
The EX adds more features, while still retaining a rugged and purposeful design. Several key features are added to the EX models, the most impressive of which has to be the 270-watt audio system.

4WD EX
The 4WD EX is the perfect Element for those who frequent the beach or the slopes (or both), especially when you consider the versatility and performance offered with 4WD and the addition of a removable skylight.

2006 Honda Element - Minor Model Change
2006 Element Highlights
  • New EX-P trim level with painted body panels
  • New alloy wheels for EX and EX-P models
  • New steering wheel-mounted audio controls (EX and EX-P)
See the specs here.
2WD LX
With standard features like air conditioning and an AM/FM/CD audio system with four speakers, the 2WD LX blends value with practicality. This Element is for those who want something a little different as well as highly functional.
4WD LX
For those who desire enhanced traction, the Element 4WD LX blends value with versatility and coddles its occupants with standard LX features like air conditioning and an AM/FM/CD audio system with four speakers. The 4WD LX with Real Time™ 4WD gets you where you need to go in comfort and style.
2WD EX
The EX adds more features, while still retaining a rugged and purposeful design. Several key features are added to the EX models, the most impressive of which has to be the 270-watt audio system.
4WD EX
The 4WD EX is the perfect Element for those who frequent the beach or the slopes (or both), especially when you consider the versatility and performance offered with 4WD and the addition of a removable skylight.
2WD EX-P
The 2WD EX-P is the answer for those who want all the great features of the EX and the cool, new look of painted body panels and body-colored door handles.
4WD EX-P
The 4WD EX-P has the smooth appearance of the 2WD EX-P, with even greater ability to traverse not-so-smooth road conditions.

2007 Honda Element - New Model added - SC

See the specs here and here for the SC
2WD LX
With standard features like air conditioning and an AM/FM/CD audio system with four speakers, the 2WD LX blends value with practicality. This Element is for those who want something a little different as well as highly functional.

4WD LX
For those who desire enhanced traction, the Element 4WD LX blends value with versatility and coddles its occupants with standard LX features like air conditioning and an AM/FM/CD audio system with 4 speakers. The 4WD LX with Real Time™ 4WD gets you where you need to go in comfort and style.

2WD EX
The EX adds more features, while still retaining a rugged and purposeful design. Along with standard body-colored panels, several key features are added to all EX models. The most impressive of which has to be the 270-watt audio system.

4WD EX
The 4WD EX is the perfect Element for those who frequent the beach or the slopes (or both), especially when you consider the versatility and performance offered with 4WD and the addition of a removable skylight.

SC
The Element SC is built for those who want something a little different. It has the same do-it-all soul as the Element, but with a decidedly different edge. Available in two-wheel drive only, the SC is a true street performer that is ready for wherever the night takes you.

2008 Honda Element
See the specs here and here for the SC model.
2WD LX
With standard features like air conditioning and an AM/FM/CD audio system with 4 speakers, the 2WD LX blends value with practicality. This Element is for those who want something a little different as well as highly functional.

4WD LX
For those who desire enhanced traction, the Element 4WD LX blends value with versatility and coddles its occupants with a removable skylight. The 4WD LX with Real Time™ 4WD gets you where you need to go in comfort and style.

2WD EX
The EX adds more features to the 2WD LX, while still retaining a purposeful design. Along with standard body-colored panels, the 2WD EX has 16-inch alloy wheels, steering wheel-mounted audio controls, an MP3/auxiliary input jack, a 270-watt audio system and more.

4WD EX
The 4WD EX is the perfect Element for those who frequent the beach or the slopes (or both), especially when you consider the versatility and performance offered with 4WD and the addition of a removable skylight.

SC
The Element SC is built for those who want something a little different. It has the same do-it-all soul as the Element, but with a decidedly different edge. Available in two-wheel drive only, the SC is a true street performer that is ready for wherever the night takes you.
I know there are a lot of details that are not presented in this post, but with the links provided you can easily see the differences in each model year. Regardless of the year, the Element truly is a unique drive.
 

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For those of you who are shopping for a used E, the 2007 with the 5 speed Auto, curtain airbags, electronic stability and more is the best buy. Because of these safety improvement and the 5 speed transmission on the 2007, I would not recommend the 2006.
 

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IIRC, MY 2007 saw the change from the k24a4 engine to the k24a8 with drive by wire, as well as the new front seats with integral shoulder harness.
...and traction control, 5-speed auto, more hp, improved radio HU with higher sampling rate, accelerometer cutting the fuel when high side loads are recorded........
 
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