Some Features of Zune:
The 30GB Zune (designed by Microsoft, manufactured by Toshiba) will use ad-hoc Wi-Fi for local communication with other Zune users.
The Zune will play back, at the least, MP3, unprotected AAC, and WMA audio files. No confirmation on other formats such as lossless, WAV, and Audible.
The round primary navigation pad is a five-way pad, not a Clickwheel-style controller.
Additional Zune features include on-the-go playlists; photo slide shows with music; song information on some FM stations; as you scroll through content, the first letter will appear just like on the Toshiba Gigabeat S and the new iPods.
The Zune's 3-inch screen will be QVGA (320x240) will shift to horizontal mode for videos and photos, and the controls will shift with it--just like on the Toshiba Gigabeat S. The software interface also borrows from the Portable Media Center interface.
No mention of Zune's potential integration with Live Anywhere. The Zune, like a few other current Windows Media devices, can be connected to an Xbox via USB, and its contents can be played back and controlled via the Xbox.
The Zune jukebox software will host the Zune Marketplace, where users will be able to purchase tracks (presumably WMA) and/or become a subscriber to Zune Pass. No details on pricing yet. It will support photos and video as well (looks like it's built on top of Windows Media Player).
The Zune will include a Journal window, which keeps track of flagged music (for later purchase) as well as songs swapped with other Zunesters. This Journal option will show up in the Zune software as well.