The Zune 1.2 Firmware Update is now available. For some reason my Zune did not 'auto update' (I gather others have). To update your zune simply go: Options, Sync, [zune name], Check for Zune Device Updates.
This 1.2 release appears to be a stability and performance release only (ie. no overt new features). I've found scrolling through the lists much faster and smoother after the update. This kind of rapid updating to the software is why I selected the Zune over the competitors (and I'll be honest I was close to getting something else).