End of the Zune2K9! Microsoft resolves fatal Zune Error
The biggest buzz of 2008 was the coming of Zune2K9, a global bug that froze all the Zune players on 31st Dec 2008 eve. This was a sudden malfunction in the Zune which stropped it from working anymore. Apart from the shock Zune users obviously faced, Microsoft itself was very surprised as well. The so called Zune2K9 bug came about because the Zune was unable to handle leap years on its internal clock. Microsoft has officially launched some measures to fix this problem.
First of all don’t keep charging the frozen Zune. Disconnect it from any power source. There should be no direct AC connection or a USB connection. Let the Microsoft Zune run out of battery juice completely. When this happens the player’s display will do black, i.e. it will simply shut down. Don’t try to discharge the battery quickly by opening the Zune and taking it out. After the Zune is off, just wait till after noon GMT, 1st Jan 2009. Connect the Zune to a power source and recharge it. That’s all. It’s simply the end of the Zune2K9. The player will function normally and you won’t encounter any such issues furthermore.
If you were using the right-managed content earlier then no need to worry, it’s all still there. All you have to do is to sync it for updates by connecting the Zune with the PC.

Actually it was only the 30Gb 1st gen Zunes that had the bug.
horrible product do not buy. Completlely shut down my download client (limewire PRO), had to uninstall all zune software before I got connection. Associates with hotmail.com so you can’t leave the social network without closing hotmail account. wont sync properly. DO NOT BUY!!!!