Bought the 30GB Black Zune from XS Cargo earlier this month as a Christmas present for me, and I find the sound and image quality to be very good. While it is a bit bigger than the iPod, to me it feels sturdier and less delicate (i.e. less likely to break or crack when handled). I'm very happy with my Zune.

It was a cinch to upgrade the firmware. Too bad Zune software does not work with Windows Media Player and some WMV files. I can't upload the free digital copy (DRM) of Harry Potter and the Order of the Phoenix, which came with the 2-disc DVD.