This time our tipster says the Zune is only the flagship product of a new line of portable devices. 
Think the iPod Video in relation to the iPod Nano and the iPod Shuffle. Important, but not the only kid on the block.
Microsoft’s concentrating on features the iPod doesn’t have, instead of trying to beat Apple at their own game. The tipmeister reiterates that ad-hoc networking feature will be there, as well as a possible buffered internet radio streaming feature. If you’re within range of a WiFi signal and you’re listening to a station, the device will snatch as much of the feed as it can so when you wander out of WiFi signal, it’ll keep playing the stream as if you were in range. Microsoft Zune Update - Gizmodo