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If you are someone who hates the new software with a passion, or someone Microsoft screwed over by taking away the Asian Character Hack, this is for you! However, there are things you must sacrifice, like the ability to sync over WiFi, and podcasts. Let's get started now, shall we? To downgrade the Zune Desktop Software:
1. System Restore to the point right before 2.0 was installed.
if that is not possible, then:
01.Uninstall
02.Disconnect your computer from the internet.
03.Install 1.1 (or 1.0) from the original CD.!
NOTE: In either case, it is best to wipe out the Zune's database and
allow it to rebuild. There was some quirkiness after the restore
because the System Restore didn't fully restore the Zune's database.
Deleting the files in:
"C:\Documents and Settings\< user >\Local Settings\Application Data\Microsoft\Zune" did the trick.
Before you start the rest, you'll need 3 files:
Zune.RE.zip
Zune Firmware 1.4
Java Runtime 6
WARNING! This will delete all content on your Zune. Make sure to backup your content!
01.Create a temp directory: C:\temp
02.Place firmware 1.4 into the temp directory.
03.Rename the firmware file to: Zune01050485.cab
04.Place the ZuneFirm.jar file from Zune.RE.zip into the temp directory.
05.Start -> run... -> cmd
06.c: [ enter ]
07.cd /temp [ enter ]
08.java -jar ZuneFirm.jar [ enter ]
09.Go to your network setting, open up TCP/IP and change your DNS to 165.132.120.124. Then in another cmd, ping go.microsoft.com to check if it's directed to yourself (127.0.0.1). NOTE: if you cannot ping go.microsoft.com successfully and you are using a router, then connect your computer directly to your cable modem. This is the crucial step... if you cannot get a ping of go.microsoft.com to return 127.0.0.1 then do not proceed until you can!
If you are trying to add Asian Character support again, you must include the asian fonts in the firmware. More information can be found here . 
Thanks sracer at ZS!
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THESE INSTRUCTIONS WORK! Make sure you execute the java download and install the runtime version...very important and not in the steps above. I had to physically erase the zune device with the 'reset' then during the reset screen you have to press the following buttons together...'back + center + left outer. This wipes the back to factory default make sure you have your data file located and backed up in a sarf place. I called Zune support because it would not let me replace the firmware. They LIE and tell you it cant be done! LIES! LIES! The zune automatically looks to the internet for the firmware, thats why you have to get the DNS pointing back to the local machine for go.microsoft.com Follow these directions and you can restore to 1.x. DNS loopback is the key and jave has to be listening on HTTP 80. Check out the screen shots of the java command in the character link by sracer.
I really hated the musically inclined 2.0 (no detailed rating, or editing options for music)
It worked! I successfully downgraded my zune to 1.5! There is a portion of the instructions which are cut off at the end and here they are: