The latest version of the ZuneHD firmware, version 4.5, is now available, bringing the announced SmartDJ and Marketplace for TV support. There are also a more expanded collection of codecs, including Xvid support and part of full compatibility with MPEG-4 part 2 Advanced Simple Profile, meaning even less video need to be converted before it can be viewed on the device.
In the above video by Engadget we have Micheal Yaeger, Zune marketing manager, taking Engadget through the new features
Hopefully Microsoft will maintain consistency and make sure these features make it to Windows Phone 7 also.
ZuneHD owners can get the update via their PC client.