I think all of this is why Microsoft's supposed "iPod Killer" has done so poorly thus far. It's basically a rip-off of the iPod, but without the current feature set or the ease of use of iTunes. I played around with my older brother's Zune (he's really into Microsoft for some unfathomable reason) and was summarily unimpressed. I'll stick with my iPod, thanks.

That said, I'm sorry you're having problems with your gift, and I sincerely hope Microsoft gets it patched so it functions as you want it to (and as it should).
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Dave