A quick run down of features offered in Zune and iPod:

Zune supports WiFi, iPod doesn’t – You can easily sync music, videos, photos and podcasts between the computer and Zune device over your home wireless network.

Zune store is DRM free, iTunes is not.

Zune is hard drive based player and hence more fragile than the Flash based memory that used in most iPod models.

Unlike the Zune, iPod Touch has a touch screen.

Zune has a wider screen area than most iPod model except the new iPod Touch.

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