I'm going to stick my neck out and be (I think) the first Microsoft blogger to tell you where to get details of the Zune.

It's widely known that Zune will have wireless functions and that means for the US market it needs FCC approval. Some people who watch the FCC web site have found this link.  It seems Zune will be made by Toshiba. The best photos are found at the end of the Test report - which says there are 3 models designated 1089 1090 and 1091which are simply different colours. There may be further models with additional functions ...

The test report says nothing about FM transmission - which was one of the things I said might tempt me to buy one. The user guide was looks very rough band still seems to be using the code names "Argo" and "Pyxis" which seems to be someone else's trade mark.  Interestingly someone had leaked the code name to engadget... What it says about wireless and other users is:

Using the Wireless communication.
Turning on wireless:
In order to use wireless sharing feature such as “send’ and “DJ” you will need to turn on your device’s wireless capabilities... ...your device will be discoverable by other Pyxis device and also be capable of searching for other Pyxis devices in range.

Sending Content:
Once your wireless setting is set to on, you will be able to send and receive photos and promotional copies of songs, albums, and playlists from other Pyxis users...  ...You will  be presented with a“nearby” list containing any Pyxis devices that have their wireless setting on and are in range. Select one (and only one) device from the list and a notification will appear on that device allowing that user to accept or reject your send.

DJing Content:

Pyxis allows you to stream music to up to 4 other Pyxis devices. ... If you chose DJ:on, anyone (max 4 at one time) can listen in to the same music that you are currently listening to. If you chose DJ: friends, only people in your friends list can listen in. If you choose DJ:off, no one can listen to your music but you can still tune in to other people who have their DJ setting turned on.

Friend requests:
You can invite other Argo members that you meet to be your friends wirelessly via Pyxis.

Sounds to me like the wireless is an adhoc peer-peer arrangement. Nothing in here suggests that the device will be able to connect to home network to play through an XBox 360, or get recorded TV from media center, or download from a PC without USB ... never mind connect directly to the internet. Whether than is a matter of documentation or whether the features are missing is anybody's guess.

Tagged as Microsoft Zune