http://www.zune.net/

The Zune 2 has been announced, and it looks like they are going to have a better lineup this time to compete with the iPod market. 4 and 8 gb flash players, plus an 80 gig unit in addition to the 30 they had. All versions have the same features, including wireless syncing now, and MPEG4/h.264 video support. The nice thing that Apple needs to take note of is that all the software features are also going to be available to previous Zune owners via a firmware upgrade. The first gen Nano units and 5th gen iPod line never did get the search feature added to the later units, something that would have likely been easy to do from a tech standpoint.

MS is also adding DRM free songs to the Zune marketplace, but no info on if these will still be WMA, or moving to MP3 or M4A. I'm assuming WMA, and the horrible MS points system, so Amazon is still the online service I am eyeing.