Update:
I called Zune back and it was downhill from there. It turns out that my Zune was returned to me because it had a hair line scratch on the display. Because that scratch, they refused to even work on it. Nevermind that it was sent in because of the hold switch. Nevermind that other than that problem, the Zune worked perfectly. Nevermind that I informed the customer service center of the scratch when I requested the box and they told me that it was no problem because my problem was with the hold switch. I was told point blank, by a supervisor, that while they understood my frustration and anger at the delays and mis-information, it was out of their hands. He went on to suggest I try a third party repair center because $250 was a lot to lose for a Zune that was only two months old. After much cursing and yelling on my part, the supervisor then hung up on me. I have found a center back east and have sent it back to them. I should hear back from them today or tomorrow. I will post the link if they are worth it.
Overall, I am fed up with the whole Zune customer service experience. I sincerely hope that they read this board and know that while I love their products, their whole customer service system is a nightmare and not worth a damn thing. I would not wish this experince on my worst enemy and judgeing by the sheer number of other postings under this category and others like it, I am not alone.