Sometime this spring the Zune HD will recieve a firmware update providing support for Xvid and other currently unsupported MPEG-4 video formats. The firmware update should also include Smart DJ support from on the Zune device.

It looks like the hidden, colourful Zune HD’s extracted from the Zune Software source files last week are actually limited edition and one is already listed on ebay as a ‘Limited Edition Zune HD 32gb Red’ which matches the ‘Atomic’ Zune HD found in the Zune Software source files.