More on the unraveling mystery of the Zune 2 launch that is rumored to be tonight @ Gizmodo ...

The next-generation Zune has just been announced, coming at you with a price tag (which we already saw) of $249 for the 80GB hard drive model and $149/$199 for the 4GB and 8GB flash-based models respectively. The new features in all models, which were leaked early, are wireless syncing with your computer automatically when you're in Wi-Fi range?something users have been clamoring for since even before the first Zune?as well as videos in the Zune Marketplace and new music, some of which are DRM-free. The Zune Pad is actually touch sensitive, much like the iPod's Click Wheel.

In addition, it looks like Cnet has this as an official announement now... Read on for more from Cnet.

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More. More. More. I love it. Rumors are flying around like jabs in tonight's Contender Boxing Match. Hope nobody gets knocked out.

Engadget has posted some nice looking leaked photos 1st of all. (click them for the big version!)

Somehow, I don't think these were supposed to be seen quite yet.

Well, 30 minutes later, more in at Engadget...

This Engadget post, if accurate basicly takes all the guess work and some of the excitement out of it all. Read on for all the details.

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From engadget:

Heads up, Zune fans ? some new product is heading your way sooner rather than later, and we suspect there?s more than a couple of things to get jazzed about. According to reports from a ?source? inside Microsoft, a new batch of Zunes (AKA Zune 2, Draco, Scorpio, etc.) are due out on October 16th (just in time for the holidays), in both flash memory- and hard drive-based forms. The new, smaller, flash Zune (the Draco) will be hitting shelves in pink, red, black, or army green colors, will have a 4GB or 8GB capacity, and will feature a ?squircle? (the source?s term, not ours) for navigation, which won?t have a center button but can be pushed, ?From any side.? The hard drive-based player (the Scorpio) will be available in 80GB, sports the soon-to-be infamous ?squircle,? and touts a screen which the source claims is ?awesome? for video.

Source: engadget

If you are on the edge of your seat waiting for the next iPod Killer, here are your details. Ok, well not much info, but at least somewhat of a confirmation that a Flash Zune is for sure in the works. This one is code named Draco according to Zunescene sources.

After our leaks regarding the flash Zune, Zune 2.0, and Zune factory were confirmed we decided to seek some new info regarding future Zune products. Once again we will protect our sources, but be assured, this info comes from inside Microsoft. The codename for the flash Zune player is Draco. Keep in mind this is not the marketing name, that name is still unknown to us. Draco will be available in two sizes, specifically 4GB and 8GB models. These numbers are eerily analogous to the iPhone storage options. As we stated in our previous story, this unit will be available for the 2007 holiday and sport unique features such as video playback and WiFi.

Zune Scene via [SlashGear]