Zune HD 4.5 update is LIVE now with lots of improvements and features. In order to install Zune HD 4.5 firmware you may have to go to settings > device > device update and then check for updates to get the 4.5 update.
The update brings new features, such as Smart DJ mix, personalized recommendations, Marketplace support for TV, expanded video codec support and so on. With this new version XviD now syncs to the Zune HD without conversion.
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