Gizmodo has received some internal Microsoft documents which confirm that the ZuneHD is being powered by the powerful Nvidia Tegra processor, and also that the device is expected to arrive in early September (about the same claim we made many months ago 😉 )
They also have some new renders, showing the device playing video from the Zune Marketplace, which neatly closes the services loop which has been lacking for so long.
The device will also apparently come in 16 and 32 GB versions, which should be enough to carry around a few of those Marketplace videos.
Read more at Gizmodo here.