I had this same problem like a month ago. I had just received my 80G Zune, used it for around a week, then suddenly one morning it froze. I managed to turn it off and when I turned it back on, a please wait sign appeared, then it said erasing content, and then a call miscrosoft support. This was not good as I live in Peru and there is no "microsoft supoport down here". I got home and connected the zune to the computer, the install new firmware thing came up, I did, and then the error happened. I thought I was screwed, tried it agauin and again and always the same result. 3 weeks later, I connected the zune again just to see if it would magically work, and it actually did update the firmware witout the "not enough space " message. So I guess itīs justa matter of luck, keep on trying until the firmware actually installs, and your Zune will come back to life. Good luck guys!!
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