It looks like there will be an update out for the Zune HD soon. Version 4.5 is going to add Smart DJ features, Picks and extra codec supports including Xvid and AVI support. Once interesting addition is the ability to stream video and music from the Zune Marketplace directly to a TV via the AV dock. The market place on the Zune looks nice and it has been much improved since I last played with it, now if only Microsoft would add DLNA support to the Zune HD we could have a very interesting Extender device

It’s a shame AC3 audio is still not supported meaning that many HD recordings from Media Center still can’t be synced with a Zune

The update should out in the next couple of weeks and you can read all about the update on Zunethoughts, you can see the a video of the new features in an interview with Michael Yaeger of the Zune team with Endgadget

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