Anilrgowda

In an embarrassing glitch for Microsoft's (Nasdaq: MSFT) would-be iPod-killer, the Zune, it emerged Wednesday that the device is not compatible with the company's new operating system Vista, which is due out in two weeks.
A Zune support site confirms that "Windows Vista is not supported at this time" and advises customers to "check back soon for updates." The Zune is designed to be used with its online music store Marketplace, where songs are paid for and downloaded, but consumers will not be able do that from the new Vista operating system.
Betting On Wireless

The news broke as the Zune hit shelves in the U.S. to less than red-hot demand. The software giant hopes that a wireless song-sharing function will help the Zune break into the market in which Apple's (Nasdaq: AAPL) iPod has sold nearly 70 million devices and holds a 75 percent share of all digital music player sales .
The Zune costs U$249 for a 30 GB hard drive unit and is designed to work with Zune Marketplace, which will compete with Apple's iTunes. The price is the same as that of an iPod with similar-sized memory.
Critics Have a Field Day

Anecdotal evidence, however, suggests there was lukewarm demand on the first day for the device despite a blizzard of marketing .
Pro-Apple Web sites had a field day with the "implausible" news that Zune could not be used with Vista.
"Apparently, Microsoft has been so focused on getting Zune out the door in time for the mad holiday rush that it hasn't gotten around to supporting the player under its next-generation operating system," Appleinsider.com said.
The much-delayed Vista version of Windows is "the most important new Microsoft release since Windows 95," according to company founder Bill Gates