DRMRest utlity solved this problem for me
jaymerkramer's solution worked for me. Here is a quote from the MOBTV discussion forums that I found from his suggested google search:
I searched the Internet and found a DRMReset utility. Downloaded and pass it to this friend to try. And it works!
Remember to restart your computer after running the utility.
NOTE: Use it at your own discretion. No risk, no gain.. If it does more harm than good to your system - don't blame me, blame yourself. If it works, then CONGRATS!!! I can see you smiling![/i]
The above fix worked for me, now Zune Version 2 software is working. The reset gets rid of DRM stuff. I didn't have any paid for content on my computer, so that wasn't an issue. If you do have stuff you bought, than you will probably want to back up things first, per the link instructions.
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