We are on rev 2.5 of the Zune software and version 2 of the hardware. I know I am coming in a bit late but it is time to compare them anyway.
The 4gb flash Zune I acquired is a lovely olive green and has the new Zune pad navigation. It came in a smartly designed chocolate colored box with every thing neatly packaged. I had preinstalled the software on my computer and when I connected up the unit I was prompted to update the firmware to the new 2.5.
Not being able to sync everything to it I made a smart play list, a new feature for the Zune program. I set it to put 100 unplayed items on. The first issue I have it the every time you connect the play list changes not just when you have played a song. This cause the list on your Zune to change also.
If you are listening to a song and need to adjust the volume the Zune behaves like the iPod. you can adjust it if your at the song but if you are browsing you can not adjust it.
I tried to setup the wireless sync but the wireless in my workplace blocks anything but internet traffic so that will have to wait.
The sound was goo and the video quality compares to the iPod favorably. As I test the Zune more I will make more reports back. for now thought this is a good player, and once Zune supports audible it will have a chance. I don’t think it will kill the iPod, perhaps just a flesh wound.