Does anyone know if ACAD Map is capable of Z-Coding, or a similar form of auto symbolizing ascii points based on description?

Do you mean symbolizing points based on their Z-coordinates or assigning Z-coordinates based on some texts (e.g. elevation label)?

No, what i want to do is set up ACAD to automatically symbolize point nodes based on the description of the ascii file.
eg: you bring in a point called valve and ACAD automatically places a valve symbol on the node.
This function is called z-coding in Microsurvey and it is very useful. As Microsurvey is a CAD based software i am hoping this is possible in Autocad Map as well.

Yes, this is a standard function in AutoCAD Map point import - see:
http://docs.autodesk.com/MAP/2012/ENU/filesMRG/GUID-92A43805-846F-43B7-9D78-8373A919672-210.htm