Engadget has a great article on info they picked up on the rumored Zune HD device.
We (Microsoft) have also posted an official Zune HD information page.
3.3” OLED Multi-touch screen (take that iPhone!)
Integrated HD Radio receiver (take that iPod!)
HD Video Out – My father has a nice HDTV but no HD tuner. Now I can plug right in an show him what his TV can really do!
Wireless – I have always enjoyed but underused this feature. Happy to see it is still there!
IE Web Browser – (take that again iPhone!)
Onscreen QWERTY keyboard – Not a big fan of these keyboards so I hope we get this right!
Integration with XBox and XBox Live – HUGE Win!