I too am suffering through this outage. I encourage all owners or currently unusable devices to exercise patience and restraint with respect to this outage. I am confident that the Zune team is working on resolving this issue as quick as possible. I advise you to not try the battery reset fix that is circulating as this will void your warranty, if any, and will likely preclude you from particpating in any kind of other fix.
If the problem is software related I anticipate that there will be a fix today, be patient. If its hardware related then The Zune team (not MS corporate) should take steps to offer voucers for massively discounted upgrades.
Regardless, consider yourself lucky that the batteries don't explode. And if there is any good that has come out of this it that the size of the Zune community has been exposed. The Zune community can no longer be called small and insignificant by iCabal people as the sheer size of this outage and the coverage on tech blogs has been large.
Again, be patient, keep an eye on the forums and I will try to update this post as I get news.