Looks like the upcoming Zune HD will have the new NVidia Tegra capable of 1080p HD video with 800 MHz ARM CPU.
3.6 inchish OLED full touch screen
NVIDIA Tegra
4GB, 8GB, 16GB, 32GB, and 120GB versions
HDMI Connection to stream straight to your TV
HD Radio
Web Browser (IE)
WiFi compatible, with wireless marketplace
Home AV packs, Car packs, Charge packs
Not the full list of specs but the fast processor and HD capability is alredy good news
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