As Zune HD launch draws near along with it’s Zune Software 4.0 some new features were being hoped for. If you were hoping for Media Center DVR support, I’m afraid you’ll be disappointed. It has been confirmed that Zune wont be supporting HD files that contain AC3 audio.
According to Microsoft:
Zune HD, and the forthcoming Zune 4.0 PC software, will support and transcode Windows Media Center recorded TV file formats from Windows Vista or Windows 7 that contain MPEG-2 video, in either the DVR-MS or WTV formats. Support is limited to unencrypted SD and HD recordings. HD Files with AC3 audio are not supported by Zune.
To be honest; this is only considerd a loss by very few people and I am sure those of you who want to convert your Digital Recordings to carry around on your Zune would have found one of the many availible video conversion software to suit your needs.

