I have had a Zune since February, and, being an owner of an iPod for a year, I LOVE the Zune. It has better sound quality than the ipod, has an Widescreen movie player that is superb quality, even for crappy movies, the layout is nicer, a backround, and when you click on an artist, you can see the names of the albums and the album art, making it much easier to navigate. The play screen for music is much sicker: it has a huge picture of the album art, and on the bottom quarter of the screen it has all the info/time played and such, using the dividing point between the art and the info as the little thing that shows how far you are through the song, overall very pleasing to see. The zune version of Itunes is much easier to use once you get to know how to use it, iTunes is easier to learn and a bigger hassle. Ripping cds on the zune software is much faster, and so is the syncing process. the screens of the zune also last longer, have more durable plastic. My Zune looked in 1month the way my ipod video looked in 3 days. The only negative is that it is slightly bulkier and lighter than the ipod, only by about .1 inches though on all accounts. I got my mine on ebay for $225, which is a steal (now they're $249 at staples but whatev).
Oh, and the DONT LOSE BATTERY IN THE COLD!