Bought both items, Zune and iPod, through eBay from different sellers (please see Favorite Sellers).  Generally speaking, they both play music, videos, and display pictures in slideshow.  However... the iPod does not allow to add or remove items without syncing with the iTunes library - must download from internet.  You may update for free through iTunes and I have downloaded over 1000 FREE podcasts, mostly educational i.e. National Geographic and Animal Planet and military news videos.  Circular control buttons are quick to respond so you have to move slowly to get where you want. With the Zune, you move the controls at your own pace; you can upload and download, and and remove music, videos, and pictures easier than iPod - and you can do it through Windows Media Player (I use version 11) already on Windows XP so you don't have to download a player from the internet.  Most media players can easily detect the Zune, but you have to use iTunes for the iPod. You can sync Zune to Zune, but you can't with iPod.  There are several software you can purchase to use iPod to display PowerPoint in class or meetings, create notes or messages, and even download DVD movies into the iPod.  I haven't been able to with the Zune - yet.  With A/V cables, you can hook-up the Zune or iPod to listen to your music or watch a picture slideshow or even your Podcasts and movies on your TV.  Both are great products and fun to have.  The Video iPod comes in 30GB, 60GB and 80GB, but the Zune only comes in 30GB.  Both are priced comparitively even.