The rumor of a Zune phone just won’t die. The fight between Apple and Microsoft typically leads to similar products being offered from both companies. It's been surprising that with the roaring success of the iPhone Microsoft has not yet offered its own phone.
Microsoft may be ready to unveil its own phone based on the Zune with hints that the device may be in the works turning up in the latest software update for the Zune PMP. The new version of the software is 126.96.36.199. The drivers are leading some publications to say the Zune Phone is basically confirmed.
Check out the circled code in the pic above and you will see several -- %Phone.DeviceDesc% = ZuneMTPZUSB, USB\VID_045E&PID_0640 -- lines of code. The lines of code are reportedly used for associating devices with the Zune driver. I wonder if these lines of code could be a way to use a music service like the Zune Pass on Windows smartphones instead?