Microsoft just came out with a second generation Zune that offered a slightly new design and new awesome firmware. Here is where the first generation Zune was dramatically improved. The new awesome firmware was also automatically updated on the First generation Zune. However, this 'old' Zune saw a significant price reduction, and when coupled with the many online offers for cash back or discounts, you can easily snag one of the near perfect First Gen. Zunes for under $100. Try to find that in the iPod line or other MP3 players of this quality.
I am literally amazed with the quality of the picture on my TV shows and video podcasts. I love the interface on both my Zune and my computer. Try as I might, I can't fill up the Zune with my music and podcasts. My only issue with the Zune is that there are fewer podcast listings in the Zune marketplace (the equivalent of the iTunes store) than I would like. I believe that with time, this will be remedied and I will love all features of this device equally.