I posted about this as soon as the new software rolled out. My Zune 80 worked every day I owned it until the second I installed the new software. I finally got it to sort of work...as in it will download a few songs when it chooses to. And I even got it to download my a podcast for a while until today when it stopped completely again. Yes, I've tried everything everybody else has. Several times. And then a few times more.
Today, I did a reset after it failed to download a new playlist today, and instead of just rebooting, it told me I needed to install the newest software. I've been trying to install it all day. I'm at step 2 at 57% progress, and have been for an hour. Microsoft totally screwed over its existing users with the new software. I've never seen a company abandon it's customers like that before on such a large scale.
I have a little old-school mp3 player that still works after 6 years. And it was relatively cheap. But when you spend as much money on an mp3 player as you could a blu ray player, or even a netbook, you expect it to perform well, and do so for several years.
Microsoft, own your mistake and fix it. It's not a coincidence. Too many people are having the exact same problem.