Just so you know I'm not all anti-microsoft (though I do go on a tear sometimes), I'm pretty impressed with this Zune review.
All in all, any reservations I had about the device melted away after I had a few moments with the Zune. Yes, it is a first-generation product but I really like the direction Microsoft is taking with the Zune. Regardless of either the Zune or the iPod, the consumer will be the winner of this new front in the battle for our entertainment lifestyle.
I'm still not convinced it's an iPod killer, but it does sound like it's a pretty cohesive app / service and of course MS is going to leverage whatever they have to make sure it integrates with your OS, console system, etc. Lets say that I am hitting the point where I wouldn't mind checking one out at least.