A lot of buzz has been going around about a couple of pictures that look exactly like a touch screen Zune.

Quoted from Cnet

"Anonymous tipsters have provided Engadget with promotional artwork depicting what may be Microsoft's upcoming fourth-generation Zune MP3 player.

If the artwork is real and the rumors are accurate, we're looking at a touch-screen version of the Zune, sized slightly smaller than the iPod Touch, with an HD-resolution wide-screen display that reminds us of the Samsung P3.

Historically, Microsoft has released new Zune models toward the end of the year, in November or September. Considering the half-hearted hardware refresh of the third-generation models last year, it's conceivable that new hardware may drop unseasonably early this time around. A quick product launch may also help stem the tide of complete iPod saturation revealed by a recent Piper Jaffray survey of teens.

While the Zune HD depicted in the artwork looks like an attractive and worthy competitor to Apple's iPod Touch, it leaves us with a lot of unknowns. For instance, how would a one-button, touch-screen design mesh with Microsoft's recent move to bring games to the Zune? Will Microsoft be able to continue its practice of delivering its latest firmware to owners of older Zune models? Will the Zune get a Web browser or enhanced audio and video streaming capabilities? Will Bluetooth finally get thrown into the mix now that it's coming to the Touch? Can Microsoft deliver the video services necessary to make an HD screen worth something?

Let's hope Microsoft has some interesting answers to these questions. I'd hate to see the Zune vs. iPod war lose its steam."

Quoted from WMPowerUser

"Some more ZuneHD information has trickled into our inbox, and while we do not, in general, cover PMP’s, Zune seems inextricably linked with the future of Windows Mobile, so its probably a valid topic of conversation here.

From our limited information, it seems the ZuneHD will feature a lot of what Windows Mobile owners have long been waiting for.

The ZuneHD will have a capacitive, multi-touch OLED screen with a 16:9 aspect ratio and TV out, from what looks to be a HDMI port on the side. The radio will now be HD and the device will support HD media playback, which will be available from the updated Zune Marketplace.

The ZuneHD will also support 3D Xbox games, but it is unclear what form this will take.

The device will come in 16 and 32 GB versions, and will support wireless sync. It will also finally come with a browser that supports multi-touch.

The device is set to launch in Fall, around September, and will also finally be available outside US, in Canada, UK and France, and possibly other European countries.

It remains likely this device will serve as a showcase for Windows Mobile 7 when it is released, and Microsoft is expected to spend a considerable amount marketing the device and service.

Edit: Something more for our readers to chew on. While we do not have confirmation of this, many bloggers are claiming the device will be nVidia Tegra powered."