The Zune HD is as close as you can currently (and officially) get to Windows Phone 7, and it's now even closer, thanks to a new firmware update released today.

What dost thou receive with the update? Smart DJ Mix, currently only available on the desktop software, is now available on-device. You also can get personalized music recommendations directly on the Zune HD, browse the Zune Marketplace while the Zune HD is connected to your TV and expanded video codecs.

So if you've got one, plug 'er in and let us know how it goes. [Zune Forums]