If MS allows the Zune HD to stream your purchased movies using the Smooth Streaming IIS technology(Instant On) and the Zune's wireless connection, you could technically be carrying around your entire HD movie collection in your pocket without wasting any hard drive space, on the Zune or on your computer.

Hell, this isn't even limited to the Zune HD.  MS is about to detach the Zune Marketplace from the Zune hardware, starting with the 360.  This means that any device that can access the Zune Marketplace can effectively stream any of the movies you have purchased.  Purchase movies from one centralized location and view them from any device that has access to the Marketplace.  I think that is friggen brilliant.  Cloud FTW here.

This is all conjecture that MS allows you to stream movies that you have purchased and not just rented movies.  Not sure why they would not.  I will research to see if that is the case.

this sounds brilliant
btw why theres no zune hd reviews yet?
i checked cnet.com and nada

I'm not sure if this is a duplicate or not, but this seems to be a really cool feature.

No, that is talking about XBox Live.  This is much bigger in scope and coolness.  And a lot less hard drive bitching.  Since hard drives are irrelavent for this case.

As I said a dozen times before: The combination of Zune HD, Xbox360 and Windows Mobile 7 is nothing else but pure magic. With the Zune Marketplace in your pocket, the instant streaming, soon Live anywhere, The Windows Live Messenger and your Windows Live ID... sky is the limit.

Think about checking your Xbox Live friendslist online with your mobile phone, talk to them via Windows Live Messenger and arrange some nice Halo ODST firefight this evening. At the same time you are "buying" this one movie your girlfriend wants to see so bad with your Zune HD. You get home, plug in the Zune HD, let your girlfriend watch this stupid movie without any kind of action, while you are online playing on your Xbox360.

etc etc.

This is kinda scary good. We are so close to anything anywhere anytime . . .

Yep, I agree completely with this.  The cloud is about eliminating the need for massive amounts of hard drive space. 

Ars Technica has a review up in you want to read one. I have a Zune HD and have been using it all day. The HD radio is a bit iffy where I live. Guess the HD signal is not strong this far out in NYC. However everything else about it is awesome. The screen is stunning.

http://social.zune.net/

This site has seriously gotten awesome.  Just visited a second ago.  They added a ton of cool stuff to it.

my opera browser repeatedly crashes when i try loading this page :/

whatever they're trying to do with my browser, i better not let them! :P