Microsoft's Zune makes strides to catch Apple's iPod

— -- Microsoft's foray comes on the heels of Apple's own refresh of the iPod line and a new version of iTunes called iTunes 8, which sports an addictive, if imperfect, Genius playlist and recommendations engine I've been testing.

The Zune 3.0 software release on the PC looks pretty slick: The Now Playing screen, for instance, shows a montage of album covers. Microsoft emphasizes community in ways Apple does not and is improving how Zune takes advantage of Wi-Fi. The first Zunes had lame restrictions. You can now buy tracks directly from Zune devices, provided you're connected to Wi-Fi. You can also wirelessly stream full tracks if you opt into the $15 monthly Zune Pass subscription.

Still, I encountered a few problems. It took a long time to synchronize the device with the music on my PC, and the progress indicator showing the percentage completed bounced all over the place. My "Zune Card" profile, which is viewable by other members, failed to update songs I was listening to and other user data.

But there are features in Zune I'd love to see on iTunes, notably the monthly subscription plan that lets you listen to downloaded songs as long as you remain a paying customer.

Microsoft hasn't mucked with the physical appearance of the latest Zune, other than to introduce new colors and capacities. I tested a black, 4.5-ounce, 120-gigabyte, $250 Zune and a black, 1.7-ounce, 16-GB, $200 model. They have the same capacities and prices — and are thicker and larger — than their iPod Classic and Nano counterparts. You can navigate through Zune's menus by sliding your finger against a Zune Pad controller up and down or left and right.

A closer look at key features: