The Zune desktop software has been updated today to version 4.2.202.0 and the main change seems to be support for Windows 7 Libraries. The update combines the monitored folders with Windows 7’s libraries and enables you to pick the default save locations.
The update also created a Podcast library which means you should be able to sync podcast via Homegroup. There doesn’t seem to be any update to actual Zune device
Old settings:
New Settings:
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I’m glad they are taking advantage of this. It is much easier for new users to understand then having the application store its own settings.