Zune MP3 Player
Zune has four letters also, is easy to pronounce, and is only one syllable long, comparing well even to iPod's two syllables ["Zune" is "tune" with a "z"]. Zune has so many features to kill the iPod with, but all these features came at a price to Microsoft.
Zune is a product from Microsoft, iPod is from Apple. Zune is one way Microsoft can recapture this important entertainment end point from Apple. Zune has also podcasting support while Windows Mobile still doesn't have it. 
Zune also has access to plenty of unique content, including music and TV shows, but Windows Mobile still doesn't have this access. Zune has everything you expect in a digital media player plus FM radio, wireless sync & sharing, and an online music community called Zune Social.
Zune is Microsoft's music and entertainment platform that provides anend-to-end solution for Connected Entertainment. Zune is a vehicle to explore new sounds and share entertainment experiences. If you're not interested in the Wifi features, you will definetly want to look at the iPod, but in several important areas (screen size, download choice, price...) Zune is a clear winner. Either way, Zune is going to bring a new dimension to the market and if anything, let's hope that Apple respond with something equally as awesome.
Music
The big feature is its ability to share music wirelessly with the ingeniously named Zune-to-Zune sharing. 
With Zune, you'll be able to choose from buying songs individually, or purchasing an "all-you-can-eat" subscription, allowing you to listen to as much music as you want. Plus the integrated FM-tuner and WiFi for downloading new music anywhere are definite advantages over the iPod line-up. Zune-to-Zune music sharing sounds like a killer app on paper, but the motivations for the viral spread of social networking sites won't necessarily carry over to the music player world.
Video
Unlike many people slamming the Zune, I have been checking out the Zune and the iPod with video in direct comparison and have to say I prefer the Zune for my usage. 
I do like the easy way you can get video content and podcasts in iTunes and sincerely hope Microsoft implements these features in the Zune Marketplace sooner rather than later as they really should have launched with these features right out of the gate. The iPod is also a nice product, but I am looking for something more durable and scratch resistant that supports an unlimited music subscription service and a larger display for video.
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