I was on abi this afternoon when I saw this...
Zune 120 On The Horizon
The original story here...
article.
FCC approves Microsoft’s unreleased 120GB Zune - istartedsomething
They say it'll probably cost around 299. Also noted, it's probably meant to fill the gap left between Apple's 80gb and 160 gb ipods. While I have no need for the extra memory, I'm sure some music junkies will.