I have a 2nd edition 80gb Zune.  I have it connect via USB to my 08' Edge with Navi and it works great.  The only thing I have had problems with, and im pretty sure its an issue with Sync, is the play similar feature.  I have over 60gb with of music and when I did a play similar after listening to Jay Z it pulled up a single Mariah Carey song and could not find anything else.  I thought it was really strange.