The new 3rd generation Zunes are in stock at Amazon.com Sept.12th with free shipping. Preorders available now. The 120gb Zune looks and feels like the Zune 80 with the touch sensitive Zune pad and oversized LCD screen. The new features come in the form of a firmware update, available for all Zunes.
Zune 120 gb Video
120GB Zune - Toshiba's 1.8" Drive
The 120 gb Zune becomes a real possibility with the announcement of of Toshiba's new bigger 120 gb 1.8" drive. Some have expected a Zune 160, however the 120gb drive is a single platter and can fit inside of the Zune 80 form factor.
To compare the 120gb Zune we have a detailed iPod vs Zune chart with all the specs in table format.