Flash Zune: It's got a great cool scroll pad, high quality screen, ample storage in a slim price, plus just about all the features in the big boy Zunes (including Wi-Fi sync). Verdict: Buy it if you're in the market for a tiny player that does video and Wi-Fi sync.

Zune 30: All the features of the 80GB Zune, but actually the cheapest of the three at under $99 because it's last year's hardware. Verdict: Buy it if you're looking for a great way to break into the Zune ecosystem if you don't need the slimness or storage space of the 80GB model, or the portability of the 4/8GB model, or the fancy new Zune pad.

Zune 80: At 80GB, the top end Zune will hold tons of music and movies, which can be synced automatically via Wi-Fi when you're not looking. Add to that a solid, if basic, software package, the Zune 80's a definite contender to the iPod classic crown. Verdict: Buy it if you want the most space and the most features out of the three options.

Zune Software, Firmware Guide [Gizmodo]

Zune 2 Hardware Test [Gizmodo]

Zune Social Hands On [Gizmodo]

The Software: Large icons, bright orange and pink colors, and lots of small (but tasteful) animations welcome you when you start up the Zune suite. Gone is the dark MTV Urge-based Zune 1 that looked like a mix between iTunes and Windows Media Player. But that's not all that's gone—Microsoft took out a bunch of features in the name of making the experience a lot simpler to use.

First off, there are no play counts and the rating system has been re-tooled to just a heart, a broken heart, or no rating at all. If you're wondering how that will affect your smart playlists, well, there are no smart playlists anymore. I can only speak for myself when I say I love making smart playlists based on songs that I've played the most or rated the highest, so this move hurts like stealing candy from a diabetic low on blood sugar.

What they did add, beyond the tastefully animated and skinnable interface (you make it you!), is quite nice. You can now wirelessly sync to your Zune, which can be initiated from either your computer OR your Zune. Once connected, you can drag songs or playlists onto the Zune icon in the bottom left. Fairly straightforward, and definitely easier to understand than the iTunes/iPod's "choose which things to sync" for a beginner. This "make things easier for the casual user" motif can be seen in all of Zune 2's changes.

Other additions we like:
• There's a little icon next to each track that shows whether it's on the device or not.
• Podcast support is quite nice and is divided up into video or audio podcasts, and but video podcasts need to be converted. It took about 30-ish minutes to convert 6 podcasts from X-Play and Attack of the Show on a low-end Pentium D machine in the background while we scoped out the rest of the Zune stuff.
• TV Shows sync fine, but also need to be converted from Windows Media Center's DVR-MS format. This also takes a bit of time depending on how fast your computer is and how long the show is.
• Windows Media Lossless is now supported.
• The video playback screen is nice, big, and full screen.
• The Now Playing screen when playing music has a huge wallpaper of your album covers.
• Marketplace has been cleaned up to match the rest of the Zune UI.

Other complaints:
• You only get two views, one where there's a huge list of artists on the side, the other a gigantic flat list of all your songs that you can sort by artist, album, or genre. Again, simplified to the point where advanced users would miss some functionality.
• Searching doesn't find stuff while typing.
• No edit screen to edit ID3 tags. No mass/multiple item edit. All you get is pressing F2 and editing the artist name, album name, or track name. You can't even change the track number. This makes it hard to edit track details.
• Synced photos are aliased compared to the first Zune software. We're not sure if this is because each picture is synced full-size and then resized on the fly (for better squirting), but it's noticeably worse.

In the end, despite a graphical overhaul that added eye candy, the features Microsoft left out make us wishing for the old Zune suite back. We'll definitely say that what's left is very refined—but like a statue that's been over-polished down to a unnatural sheen, it's missing important features. And we'll take features over a glossed-up interface any day. Let's add back the features in Zune 3.

vs. iTunes: What used to be quite a close match between the Zune suite and iTunes has turned into a one-sided first round knockout for iTunes. Apple's changed iTunes very little since a year ago, but Microsoft has completely re-vamped their offering. We'd rather them de-vamp this, take a look at iTunes, and add back smart playlists, song ratings, play counts, metadata editing, and everything else that makes iTunes the best music manager software on desktops—Mac or PC.

The Player: While Microsoft changed a whole lot on the desktop side of the Zune experience, the player side actually changed very little beneath the big-lettered facade of its front screen. It's true that the menus are large and in your face, but the now playing screen is essentially the same as in the first edition. The same goes for playlist view, the song list, genres, albums, and artists. Only slight navigational changes (such as more horizontal scrolling) and presentation differentiate this version from its predecessor, as you can see in the video above.

We got our hands on the 8GB Zune and proceeded to shove it into our pants—this time for scientific reasons.

Videos and pictures still display the same—tilted to the left in landscape mode—but the addition of podcasts is very welcome. They're separated between audio and video, and video podcasts play exactly like a standard video. The whole section is nicely integrated into the Zune experience.

The biggest change is the wireless sync, and to Microsoft's credit, it works beautifully. Dig into the settings menu, under wireless, and you can trigger a manual wireless sync. Connect it to a power source and it will automatically sync after a minute's worth of idle time. The setup process to connect to your wireless point is simple as well, but needs you to connect your Zune (via USB) to your PC. There might be a problem if your computer's out of Wi-Fi range, but otherwise it's pretty much painless.

Some things, like podcasts and video, are too large to sync quickly over Wi-Fi. This means you should sync with USB if you're in a hurry. Other than this, we don't have any complaints about Wi-Fi support. They've finally delivered on a feature people have been asking for for a year. This is exactly why this Zune 2 firmware update feels more like a maintenance release than a feature upgrade—which makes us understand why Microsoft is giving it away for free to old customers.

vs. iPod: Have we changed our recommendation from last year? Yes, things are quite different now. The iPod itself didn't get many new features, but the introduction of the iPhone means you've got something else to consider now. Then there's the iPod Touch, which has the power to provided both music and internet features, and more when hacked. You don't want to have to manage your music library in both iTunes and Zune, which tips the scales in Apple's iPod classic's favor.

However, for brand new customers that haven't dipped into either company's ecosystems, the Zune player seems to have slightly more features. Both iPod and Zune support music, video, TV Out and podcasts, but the Zune still has FM radio and it still has the Zune Pass subscription service. Add to that the convenient wireless sync, and you've got an offer that's quite tempting. Despite these plusses, the child-like software that limits what you can do with your music really hurts. In the end, it seems that Apple has kept the delicate balance between keeping functionality while making their software usable, while Microsoft has fallen off the fence and landed on the side of over-simplicity.

•The Zune's blockish body is thin, but not as thin as the iPod's rounded body. Height causes the Zune to not be as pocketable. (Zune: 1.6 x 3.6 x 0.33-inches, iPod: 2.74x2.05x.25 inches.)
•The Zune's candy red beats the crap out of the iPod's anodized finish. The pink looks terrible, and I reserve judgment on the green. The Zunepad has a textured surface, but the bodies of these things are aluminum and the slickest paint you've ever seen on a gadget.
•The headphone jack is on the bottom, as is the dock connector (same as big Zune connector). There's a lock on top.
•The D-pad's raised profile is a blessing when it comes to track changing while the Zune is in pocket. but it does cause a bit of friction when sliding into the denims. Man, I need to exercise.
•The Zune's aluminum back looks gray, and is dull in comparison to the mirrored finish on the nano. Good news, it won't scratch as easily.
•Twisting the chassis shows some flex.
•It's very similar in size to the last gen nano, but has the same size screen as the current gen nano, in a much more efficient layout.
•More or less - the Zune has a 1.8-inch screen vs the 2-inches on the pod. Don't be fooled by the black border around the Zune's screen, which makes it look bigger than it is, but to Microsoft's credit, the black border helps the screen pop nicely.
•Oh, one more thing we can't forget. These little flash players by Microsoft have Wi-Fi inside for song/photo sharing and wireless sync. Pretty impressive in such a small package.

•The new touch sensor, the Zune pad, is actually terrific. There's a bit of lag, and drifting causes the flicking to be less precise than say, an iPod touch, but I prefer the Zunepad to the too small wheel on the iPod nano for quickly browsing lists. Clicking the D-pad for select is not that precise; often I'd want to click down and would hit "select" instead. That point aside, this is possibly the biggest reason to upgrade from a Zune 1 to a Zune Flash or 80GB. It is a lot better than the dumb directional pad of the original Zune, and scrolling through large lists of songs is much better this way.
•The screen has the same res as a full Zune 80, at 320 x 240 pixels, same as the nano, but is slightly less bright. Nonetheless, it's sharp and it's a great screen.
•The Zune pad's texture feels like your finger is on a zipline as you scroll. Whee!
•Here's a comparo of the Flash Zune to the nano and 30GB generation one zune.

Bill Gates says that the Zune is part of a 10-year plan to build a digital entertainment business, of which the Xbox 360 is definitely a big part of. Whether they'll tie the Zune and the 360 (just like the Zune got some Media Center integration) is unknown, but probably coming.

Robbie Bach also wants everyone to know that "this is going to be an Apple-Microsoft" thing, reiterating that not just are they aiming for #2, eventually they want to be #1. [Seattle PI]

[Financial Times]

• The Zune and Zune Software now supports lossless audio. Windows Media Lossless.
• Microsoft claims that the Zune is now a much superior option compared to the iPod.
• Launch date, according to Amazon, is November 13.

• Zune Pass (the monthly subscription scheme) work with the 1 million DRM free songs, but all songs you download with the Zune Pass will still be wrapped in DRM to be recognized as a rental.
• Wireless syncing will automatically sync one minute after activity is stopped as long as you're in Wi-Fi range and attached to a power source (dock, AC adapter). You can manually trigger the Wi-Fi sync as well even without being connected to power.
• Syncing will interrupt any activity you're currently doing.
• All the old accessories are compatible with the new devices (there may be some problems with a dock, but they'll get back to us)
• Screens are now made of glass as opposed to plastic in the 30GB
• The Flash Zunes, even though smaller, have the same resolution as the 80GB Zune.
• Zune Social, the social networking site, will launch in beta.
• You won't be able to send songs through Zune Social, just pointers to 30 second clips of what you're listening to
• The brown isn't discontinued (it's still in the 30GB models), but they say green is the new fashionable color, so they're going with that in the Flash models
• No battery life details yet
• No sound quality comparisons vs. the iPod yet either

Update:
• The new Zune dock offers component out with the 80GB, composite out with the 30GB, and no video out for the 4/8.

Contrast this to what Apple did between the iPhone and the iPod Touch. The iPod Touch is running the same OS as the iPhone, but it's artificially gimped. There's no email. There's no weather or stocks. No notes. No adding events to the Calendar. When old hardware can't support new features, that's not anyone's fault. But all this stuff that's right there in the software and costs nothing for Apple to put in, and they leave it out to artificially differentiate the product line.

Back to Zune. Not only is the old 30GB getting the new Wi-Fi syncing, it's getting the updated sharing features, the new codecs, the podcasts, and the new Windows Media Center TV on the go. It's essentially the new Zune, except thicker and with less storage space...which makes us ask why Microsoft would be so generous as to kill half the reasons why you'd ever upgrade to a new Zune. But as buyers, we'll just say thanks.

If you're now interested in what Microsoft's throwing your way, you have the option of picking either the 4GB, the 8GB, 30GB or the 80GB, which only differ on size and storage space (plus the 80GB comes with premium headphones). You get to decide what you want. We appreciate the gesture of supporting your old hardware to the end, when it makes sense from a customer's point of view, and when technically feasible. (Keep ignoring the marketers, thanks.) No artificially gimped players here.

We're live-updating as we find out more after the jump.

Zune Marketplace now has music videos, but no movies. Three million songs total. The 80GB Zune also has a large, 3.2-inch screen, but only comes in black. It's also smaller and thinner than the original Zune. The flash-based Zunes, on the other hand, come in pink, green, black and red, and are the smallest of all. [CNET]

Update: The sharing feature is being expanded so you can send music AND "other media" to other Zunes. The shared songs have no expiration date and can be shared again with other people, but the same 3 play limitation is still there.

Zune's also getting a Zune Social social-networking site. You don't even have to own a Zune to join. You can have Zune Cards to "reflect your musical preferences," based on the music you listen to on your Zune player. The card can have custom pictures and backgrounds. Displays your currently played song. You can also browse other people's cards and sample the standard 30-seconds of the song to see if you like it. There's also going to be community-generated charts to see what's popular right now in the Zune community.

The Zune's got a re-worked navigation button and no longer has brown as a color. Darn, we liked the brown. [NYT]

Update 2: There's additional video codec support as well: h.264 and MPEG4. You don't have to convert all your stuff to WMV.

Zune's also getting a feature to automatically import recorded content from Windows Media Center as well, meaning you can take your TV shows to go just by syncing up with your computer.

Update 3: The 30GB Zune actually isn't being eliminated, and will be offered at $199. Amazon already has it for $165-$185 now. It's going to get Wireless Sync, the upgraded Zune to Zune transfer, and the recorded TV content to go. It's most likely got the same codec support as the 80GB.

Update 4: There's no Zune Wi-Fi store access here. You're still going to have to buy your music from your computer and sync it to your Zune. But, Microsoft says:

Update 5: Wired has a hands on.

What we're waiting to see is more revolutionary changes, such as the ability to access the Zune music service via Wi-Fi.

80GB Zune Feature List:

Beautiful, big color screen. A bright, durable 3.2-inch glass screen delivers uncompromised portable video viewing. Your music, video and pictures never looked better.
• Touch controls. Fly effortlessly through your song, picture and video collections with the new Zune Pad. Innovative new touch controls let you brush or click.
• Wireless sync. Cut the cord to your PC. Refresh your Zune with new content anywhere you charge your device. Connect to your PC through your home wireless network by setting your Zune to automatically sync the latest podcasts, music and more from your stereo dock, AC adapter or speaker dock accessory.
• Zune Social, a beta online community Web site. Discover, share and leave your musical mark. Create a Zune Card and personal profile at Zune.net to reflect your musical identity. Invite friends, share song recommendations, post comments and browse member pages to discover new music and connect to other people with similar musical tastes.
• Zune Marketplace. Get your fill. Over 3 million songs, albums, DRM-free MP3s, music videos, audio and video podcasts and more. Buy individual songs and albums or choose a Zune Pass to get unlimited downloads for a flat rate.
• Wireless Zune-to-Zune sharing.3 Share full-length tracks of your favorite songs, albums, playlists, pictures and even audio podcasts. Listen to the full track of any song you receive up to three times, and even pass along songs you receive to other friends who have a Zune. If you like a song you receive, you can easily add it to your wish list and then buy it from your PC the next time you sync.
• Recorded television content to go. The Zune software will now automatically import broadcast content recorded on Windows® Media Center for Windows Vista® Home Premium or Ultimate, so consumers can sync them onto their Zune and hit the road.4

• Built-in FM radio. With the built-in FM tuner you can listen to your favorite local FM radio stations while you're on the go. Advanced tuning capabilities allow you to see the name of the song and artist currently playing on select frequencies.5
• Import your music. Zune software will automatically import your existing music, pictures and videos, including music you have ripped into iTunes and Windows Media® Player, even transferring your existing playlists and song ratings in one easy step. Some content may be protected by the service you purchased it from, so those files cannot be imported.
• Your games. Your music. Your way. Plug your Zune into your Xbox 360® and customize the soundtrack in your favorite games. You can also stream the music, pictures and videos from the Zune software on your PC to your Xbox 360 console using a wireless connection.
• Accessories. A full line of Zune accessories are available to enhance your experience wherever you are, at home, on the go, in the car or working out.

Zune Marketplace—the Zune version of iTunes—will get videos, more music and podcasts. The 80GB is thinner than the current Zune and has a generous 3.2-inch screen as well. And that new square/circle control? That's called the "Zune Pad". To be clear, this is all rumored until the official announcement comes down from Microsoft. [Zune Scene]

Update: Silicon Alley Insider says Microsoft will be adding DRM-free music into Zune Marketplace. They're not sure how many labels will be into this, but it might be EMI and Universal, seeing as they're already into the DRM-free game.

Update 2: Local news station KING 5 seems to be going off some AP release that's meant to be embargoed until later, but says that yes, there's three models, a black 80GB, and a pink/green/black/red 4 and 8GB flash-based. They confirm the Wi-Fi syncing as well. [King5]