gjw

I have used it with Windows XP MCE SP2 and also Windows Vista and never had any real problems.
I think the majority of the complaints were from people who either upgraded from old software, (the upgrade process was flawed but has since been fixed), or else were complaining that features were missing/different after the upgrade.
In the latter case, they were valid complaints because some things were drastically different between the 1st and 2nd generation Zunes but they're nothing that a new user would notice.

As for video handling, the Zune reads WMV and MP4 (WMV only on the Zune 30) so if you've ever converted video for Windows Media Player Mobile, the same software should work for your Zune.
I always used Pocket DVD Studio for my Axim and it works just as well for my Zune.

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