I played with one last night as we were putting them up on display... It's a POS. I hated it! The screen is jumpy, it doesn't actually have HD onboard, you have to output to an HDTV. Once again Microsoft Over promises, and under delivers. I wish they would do the world a favor and just make par for the course office software and gaming systems. Leave the rest of the tech market to organizations that know quality and design.
Interestingly enough, I gave a customer who had told me he wasn't on the iPod band wagon, and was waiting for the Zune HD, the opportunity to play with the device last night... He handed it back to me and said, "It's not what I expected. It's way smaller, and feels cheap. Let me see the iPod Touch". Needless to say, he walked out with an iPod Touch 16GB in hand.