The new 120GB Zune was tested on June 19th and FCC has just approved it. It is expected to be released this year as part of Microsoft's yearly update to their players and software suites.
The prediction is the the new 120GB Zune will be available for ordering (online or retail) on or before November 30, 2008.
Reference articles:
https://fjallfoss.fcc.gov/prod/oet/forms/blobs/retrieve.cgi?attachment_i...
http://www.istartedsomething.com/20080818/fcc-approves-microsofts-unrele...
http://www.mobilemag.com/content/100/337/C15970/
http://www.ubergizmo.com/15/archives/2008/08/fcc_reveals_120gb_zune.html
http://gadget.blogdig.net/archives/articles/August2008/19/FCC_Reveals_12...
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This is a done deal. Already on sale!
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