Flash-based Zune to sport 8GB, keep video?

A few details of the flash-based Zune have surfaced, a claimed insider within Microsoft has said. The smaller, skip-proof player is reportedly codenamed "Draco" and will share all the features of the hard disk version despite the size reduction, including the Zune's characteristic Wi-Fi music sharing and video playback -- both of which are omitted in its current rival, the second-generation iPod nano. Capacities should also be similar to its competition with 4GB and 8GB of storage, the source says.

The widely expected holiday 2007 ship date for "Draco" has also been reconfirmed, though the contact had no information on finer details such as colors, price, or possible expansion of the built-in Wi-Fi to include direct music downloads as well as today's Zune-to-Zune sharing. [via Zune-Scene]