Our favourite CE based media device is getting a significant hardware update this year. The ZuneHD will be the newest member of the Zune family with a high definition video output (via the dock connector), a build of Internet Explorer, and an OLED display. The resolution of the screen is 272 by 480 and and supports multitouch, though no word on what gestures it will support. The unit also features an HD radio and some how ties into the Xbox 360 (hopefully more information on that will be released at E3 next week).
More info here.
Interesting unrelated video here.