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NOTE: It has been suggested by many users on the forum that you disable the "Update Album Information" option under Settings...Collection... You will find it at the bottom of the screen below the file paths for music/videos/pictures/etc.
Do this before you follow the steps below.
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If you Have Windows XP:
Screen Shot Tutorial is here : http://www.sharingisgood.com/index.php?option=com_content&task=view&id=19&Itemid=42

If you work better without pictures, here are the steps you need to follow:

1.   Close Zune Software
2.   Open Explorer and browse to c:\Documents and Settings\<your_name>\Local Settings\Application Data\Microsoft\Zune
   *** Make sure Hidden Files and Folders are shown. ***
   1.   Open Windows Explorer.
   2.   Goto Tools (up in the menus)
   3.   Goto Folder Options
   4.   Click the Views Tab (in the dialog box that appears).
   5.   Make sure Show Hidden Folders and Files is selected in the list box.
   6.   Click OK.
3.   Find the CurrentDatabase_365.wmdb (that is the 1.0 data store) rename it to CurrentDatabase_365Old.wmdb
4.   Find the ZuneStore.sdf (that is the 2.0 data store) rename it to ZuneStoreOld.sdf
5.   Restart Zune Software, it will find all the media files in your monitored folders and add them to your collection based on the metadata in the files.
6.   Don't use the software until it finishes adding the files.

When you plug your zune back in:
The Zune software will state that your Zune is not associated with your PC.
Go ahead and tell it that it should be associated.
You will have to re-setup your wireless sync also.
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If you have Windows Vista:
Screen Shot Tutorial is here: http://www.sharingisgood.com/tutorials.htm

If you work better without pictures, here are the steps you need to follow:

1.   Close Zune Software
   *** Make sure Hidden Files and Folders are shown. ***
   1.   Open Windows Explorer.
   2.   Goto Organize (top left of the Explorer Window)
   3.   Goto Folder and Search Options
   4.   Click the Views Tab (in the dialog box that appears).
   5.   Make sure Show Hidden Folders and Files is selected in the list box.
   6.   Click OK.
2.   Open Explorer and browse to C:\Users\{your_username}\AppData\Local\Microsoft\Zune
3.   Find the CurrentDatabase_365.wmdb (that is the 1.0 data store) rename it to CurrentDatabase_365Old.wmdb
4.   Find the ZuneStore.sdf (that is the 2.0 data store) rename it to ZuneStoreOld.sdf
5.   Restart Zune Software, it will find all the media files in your monitored folders and add them to your collection based on the metadata in the files.
6.   Don't use the software until it finishes adding the files.

When you plug your zune back in:
The Zune software will state that your Zune is not associated with your PC.
Go ahead and tell it that it should be associated.
You will have to re-setup your wireless sync also.
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If your albums are not right on your Zune:

1.   Connect your Zune to your PC.
2.   Goto the Device Tab in the zune software, and remove any albums that are not right.
3.   Go back to the Collection Tab and browse to the albums you just removed.
4.   Right click them and choose "Sync with <<Device Name>>"
5.   Those albums will re-sync to the Zune.

* If this does not work, or every album is not right, you can re-sync your entire collection by wiping the Zune clean.
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If some of your albums (on PC) still do not look right after the fix:

1.   You can use a MP3/WMA tag editor to fix the albums in question.
OR
1.   You can use the Zune software to fix them.
2.   Soft the column that all of the data is correct on, (ie: if Artist is OK, but Album is bad, sort by Artist).
3.   Right click on the part that is wrong on the song, and goto Edit.
4.   You can now edit the name.
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How to fix wrong album art: (Contributed by: bitkiller0)

1.  Perform steps 1-4 in StreetChariot's initial post (including disable of "Update Album Information" option under Settings...Collection...)
2.  Navigate to %USERPROFILE%\My Documents\My Music\Zune
3.  Click on the Search Button
4.  Search for all files and folders named zunealbumart.jpg
5.  Delete all files found within music folders
6.  Resume steps in StreetChariot's initial post at step 5. 
7.  Re-enable the "Update Album Information" option under Settings...Collection...
8.  ZuneAlbumArt.jpg files will be regenerated as well.  :)

***   There are many helpful people watching this forum that can help you with any issues you have.
***   Hopefully the tutorials will solve all of your issues, but if they don't feel free to contact any of us helping out on the forum.
***   Thanks again to everyone who has helped contribute to this forum.

Oh, and before I forget, I do not work for Microsoft, I'm just an avid Zune fan, and want to see the player succeed. :)