12 This news has been confirmed that the Zune HD will contain NVIDIA’s new Tegra chip set. Well, the Tegra is basically a complete computer system on a chip.

21 This is a a powerful processor for the Zune HD, and will give the device the ability to do more than just the basics.  As a comparison, NVIDIA was originally targeting this chip towards netbooks and MIDs.  Zune HD needed a powerful graphics processor to support the HD 720P video out.  Plus the Tegra is the first chip to support Adobe’s Flash acceleration, which would make the Zune HD the first player with an integrated flash player.  I am just completely excited with this news.  This really gives the HD the ability to be a portable computer.  To me, that means there will be apps on the way.  I think MS has to have all kinds of apps for the Zune HD if they want to compete with Apple.

source