Straight from the help file:
Content usage rights for Zune Marketplace content
Usage rules for content that you purchase
•By default, DRM-protected content that is purchased from the Zune Marketplace is allotted five "PC" licenses and unlimited device syncs. In some cases, additional licenses may be available if you use all five default licenses. To obtain additional licenses for content, you must contact Zune Support.
A license will automatically be consumed in the following scenarios:
•The content is downloaded and played on a computer for the first time.
•The operating system is reinstalled on a computer.
•Significant hardware changes are made to the existing computer.
•The Windows Media DRM components are reset.
•You are authorized to burn (copy) DRM-protected purchased music and playlists that contain DRM-protected purchased content to a CD or to a DVD for personal, non-commercial use only. There is no limit to the number of times that you can burn an individual song. However, you are authorized to burn the same playlist a maximum of seven times only.
You cannot burn music videos or TV video to a CD or to a DVD.
Note The MP3 format does not include DRM and does not come with these restrictions.
•TV videos and music videos do not include send rights between devices, nor can they be streamed from a device to an Xbox 360 console.
Marques Lyons (tromboneforhire)
Zune MVP
Contributor, http://www.insidethecircle.net
