My understanding is that all 2G Prius have side curtain airbags. If you look at the C-pillar interior plastic trim you may be able to see the SRS label, which would be evidence that the side curtain airbags are installed.
I seem to recall when we bought our 2006, the side airbags were only on the better packages. I know that was true with VSC and the seat airbags, but I can't be sure of the details. That was part of why we went for one with all the toys. Tom
Yes it does. In the owner's manual there is lots of stuff about airbags including diagrams. One thing I found confusing was the manual's explanation of which airbags do and do not deploy when there is no one in the front passenger seat. I couldn't figure out of if the side curtain airbags would deploy if there is no front passenger, so that a passenger in the back seat would be protected if there was no one up front.