ZuneHD rumors have been doing the rounds over the last few weeks and now, we’re of the opinion that there’s just too many spy shots for it to be a rumor. Now all we're worried about is the feeling that this device is too good to be true.

The latest in ZuneHD talk is that this device could be the missing piece of the puzzle for Windows Mobile users. According to WMPoweruser the new Zune will have a capacitive, multi-touch OLED screen with a 16:9 aspect ratio and TV out, from what looks to be a HDMI port on the side. The site goes on to say that the radio will now be HD and the device will support HD media playback, which will be available from the updated Zune Marketplace. Interestingly, it also says the ZuneHD will support 3D Xbox games.

Set to launch at some stage in the Fall, we’re looking at both 16GB and 32GB versions with availability in the US, Canada, the UK, France. Alright, as someone who doesn’t know one end of a Zune from the other (and has no desire to) I really want one of these. They had me at HMDI. That aside the 3D Xbox games piece intrigues me. I say forget the ZuneHD and turn this thing into a phone. It’s a fine looking piece of kit and with what we know so far, it’s got it all. Bring it on.

Hit wmpoweruser.com for the full scoop.