[Mr Hyde]

This is probably somewhere in the FAQ but:

Reset Zune by pressing th eBack button and Up on the disk controller

Format Zune via Zune software menu Options>Sync> your Zune Name> remove all files from device (or something like that)

Restore Zune to its "Out of the Box" state by Doing a Reset (Back button and Up) and then immediately after the screen goes black press the Back button, Left disk and the center button all together. Hold until you get a screen that says "Please wait" and the Zune will reset to it's out of the box state. There will be instructions on the screen for you to follow at this point sinc you need to update the firmware again.

I can tell you that trying to do the restore is hard if youhave normal sized hands. Smaller hands would be better. Pressing that 3 button combo after the Reset is difficult and took me several attempts before it actually worked. Before you resync remember to remove your device from the Zune Software on your computer by right clicking your device name and select Delete.

Your Zune should resync normally after the firmware update