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Neowin is running a brief but tasty interview with a source they call TK, who is supposedly a software engineer at Microsoft and has a good track record with them on Zune info.

The put several key questions to him about the upcoming Zune HD, and here are some of the most interesting ones, with his responses…

RR: What are you most looking forward to with the ZHD & Zune 4.0?

TK: Improved battery life, multi-touch and movies.

RR: Ah, so movies are coming to the marketplace at long last?

TK: The Zune team is working hard to get all the licensing agreements in order.

RR: What are the sizes of The Zune HD?

TK: 16GB and 32GB, Microsoft is considering adding a 64GB Zune later on in the model year

RR: When is Microsoft planning to ship the Zune HD?

TK: Early September

RR: How much is Zune HD projected to cost?

TK: The prices are not set in stone yet, but the 16GB will be somewhere in the range of $249 -$280

A 64G on the horizon is great news, though having it available at release would be much better. A lot of people may hold off on buying it for the larger version, which will help the tech press label it a failure early on. They need to come out at release using all their advantages if they mean to take a piece out of the iPod Touch market.

The price looks nice up against the iPod Touch, especially with the additional features of the Zune HD…but expect a Touch price drop as soon as these numbers go official….IF they go official.

Zealot (446 Posts) - Website | Twitter | Facebook

By day a department manager and writer for a major network device vendor...by night Zealot stalks the mean magnetic streets, striking fear into the hearts of bandwidth abusers and theme park mascots. Zealot has been involved with mobile devices for more than a decade now, starting off with dumb phones, moving to PDAs and then to smartphones, notebooks and netbooks with the odd PMP thrown in. Most of his mobile time currently is spent on a Treo Pro, Zune HD, Thinkpad T61, Gigabyte M912M or a Hackintoshed Compaq Mini 704. He proudly groks the Geek community and considers himself a Neo Maxi Zune Dweebie (thanks Will Wheaton!).