i've been searching and searching for an s class('03-'05 ) wether its s430 or s500 4matic with the option of power rear seats and rear climate control, but i have yet since found one. i only saw these options on the s430, s500, and s55amg , but not on any of the s class 4matic. are these options not available with the 4matic?

yes i had a 2005 with the rear seat package in 4-matic, till i traded it in for my s550 4-matic, if you go to the mercedes website and search the preowned section you will find one with it....

this is regards the passenger side rear seats. I know that if i move the horizontal seal switch in the rear passenger door it moves the rear seat (or the front depending on the seat switch selector) forwards and backwards. If i move the vertical switch, the one that pertains to the seatback, is the rear seatback supposed to recline independently?

I have an 05 s500 4matic with the rear air and reclining seats.

The vertical switch on mine is just there to complete the looks on the switch. It does not move.

When you move the seat bottom out, the vertical section moves out a bit, it looks like.

Just to add my two cents. I have a 03 S500 with the split rear seats but the seat bottom on moves. Don't think it is designed on any models for the back of the seat to move. As you may notice it has no where to go because it butts up against the rear deck. The buttons are there for cosmetic reasons only.

thanks guys i was afraid the MB rep was giving me the BS when i asked him about this switch

Great way to put it.