On the news today is this blog post from the Seattle PI about how the folks at Gizmodo got a demo of the new Zune HD, "Microsoft’s answer to Apple’s iPod Touch, set to be released this fall".
Zune HD Video Hands On from Gizmodo on Vimeo.
Very cool. I do think that there is a market for the small form factor 4/8GB units, of which I am fond (next to our tried and true 30GBs).