Cnet is now my favorite site… They have posted their info about the Zune HD and here it goes….
720P Video:
The Zune HD supports 720p video content, which you’ll be able to purchase directly though the Zune Marketplace software. Video content purchased (or rented) through your Xbox can also be downloaded and transferred to your Zune by checking for them in your Zune Marketplace purchase history.
The Zune HD will bring the EQ back to the Zune according to Donald.
Now Playing Screen interface
The music playback screen has also been given a lot of work. Without the benefit of a navigation pad or playback buttons, users will need to tap the middle of the screen once to access a large four-direction onscreen cross for play, skip, reverse, volume. Controls for favorites, shuffle and repeat are found conveniently near the bottom of the screen, instead of buried in sub-menus.
Another cool thing is the Zune will pull in artist info and pictures:
The Zune’s coolest music trick, though, is that it automatically pulls in a gallery of band photos, biographical info, and similar artist recommendations for any currently playing song–regardless of whether the track is from Zune Marketplace or your friend’s hard drive or torrents. It’s feels a little more like digging through Last.fm now, instead of just a straight-up music directory. If the Zune’s connected up to Wi-Fi, listings of related artists will link though to the mobile version of Zune Marketplace, where tracks can be streamed and purchased directly.
As for the browser there is NO flash support.
[Source Cnet]