Confirmed on my Zune 80.... but a couple things....
1) It does exactly what mar0karter showed in the video, the selection stays a "bright highlight"..... then his video ends. I sat there and hit several buttons, back, up, down, play, etc..... after about 10-15 seconds it completed all of those commands in rapid succession and was "back to normal" (you know.... like a temporary freeze we've ALL seen if you've used Windows for several years.... like, "umm... is it doing something? ah yes, there it is). So, basically, the zune is just probably doing something with preparing to end the song, or the next song... and you just blew it's mind. In any event, mine came back without resetting.
2) In the video, you say it's "p'ing" you off.... my question is, do you perform this series of buttons in rapid succession a *lot* when playing your zune? Even if it was a bug, I can't conceive of a time where I'd do this. Not to say that it's not a bug.... but just seems like this thread is here to brag that someone found an issue, and is trying to make it seem like it's a huge issue that Microsoft should care about. I work in the software industry, and I can tell you that out of the millions of possible things you could to try and mess up the Zune... you would probably come across 100's that will..... they are not all important and not worth putting time and money into fixing. Here's a test.... try hitting Backx99, Up, Down, Up, Down, play, pause, up, pause, Upx200, Downx123, back, back, up, play, pause, play, back, up, down, pause, back, up, centerx49, downx48, play/pausex88....... and tell me what happens.
Sorry to be rude and sarcastic a good bit here.... I just think it's a non-issue. sorry. :-/